Viasat Announces Pricing of $400 Million of Senior Notes

Rhea-AI Summary

Viasat (Nasdaq: VSAT) has announced the pricing of its $400 million offering of 6.500% Senior Notes due 2028, set to close around June 24, 2020. The notes will be issued at face value and guaranteed by Viasat's domestic restricted subsidiaries. Net proceeds of approximately $394.6 million will be allocated to repaying existing borrowings and general corporate purposes, which may include satellite-related costs and strategic initiatives. The offering is made under Rule 144A and Regulation S, with no registration under the Securities Act required.

Positive

• Pricing of $400 million in Senior Notes at a 6.500% interest rate indicates strong demand.
• Proceeds will reduce outstanding revolving credit facility borrowings.

Negative

• Notes have not been registered under the Securities Act, limiting their marketability.

CARLSBAD, Calif., June 17, 2020 /PRNewswire/ -- Viasat, Inc. (Nasdaq: VSAT) has priced its offering of $400 million in aggregate principal amount of its 6.500% Senior Notes due 2028. The notes were offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The notes will have an interest rate of 6.500% per annum and will be issued at a price equal to 100.00% of their face value. 

The closing of the sale of the notes, which is subject to customary conditions, is expected to occur on or about June 24, 2020. The notes will be guaranteed on a senior unsecured basis by any and all of Viasat's domestic restricted subsidiaries that in the future guarantee Viasat's existing revolving credit facility.

The net proceeds from the offering (which are estimated to be approximately $394.6 million, after deducting estimated commissions and offering expenses) will be used to repay all of its outstanding borrowings under its existing revolving credit facility and for general corporate purposes, which may include financing costs related to the purchase, launch and operation of satellites, potential acquisitions, joint ventures and strategic alliances, working capital or capital expenditures.

The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act.

This press release is neither an offer to sell nor the solicitation of an offer to buy the notes or any other securities, and no offer, solicitation or sale will be made in any jurisdiction in which, or to any persons to whom, such an offer, solicitation or sale is unlawful. Any offers of the notes will be made only by means of a private offering memorandum. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

Safe Harbor Statement
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements regarding the proposed offering and the use of proceeds therefrom, and are generally identified with words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "target," "will," "would," variations of such words and similar expressions. Such statements reflect management's current expectations, estimates, forecasts and projections about the industries in which Viasat operates and the beliefs and assumptions of management as of the date of this press release. Factors that could affect Viasat's forward-looking statements include, among other things, risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the offering. In addition, please refer to the risk factors contained in Viasat's SEC filings available at www.sec.gov, including Viasat's most recent Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Viasat undertakes no obligation to update or revise any forward-looking statements for any reason.

 

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SOURCE Viasat, Inc.

FAQ

What are the details of Viasat's Senior Notes offering?

Viasat is offering $400 million in Senior Notes with a 6.500% interest rate, due 2028.

When is the closing date for Viasat's Senior Notes sale?

The closing is expected on or about June 24, 2020.

How will Viasat use the proceeds from the Senior Notes offering?

Proceeds will repay existing borrowings and fund general corporate purposes, including satellite finance.

What is the interest rate on Viasat's Senior Notes?

The interest rate on the Senior Notes is 6.500% per annum.

Are the Senior Notes registered under the Securities Act?

No, the notes have not been registered and may only be sold to qualified institutional buyers.