Viasat Announces Proposed Private Placement of $1,250 Million of Senior Secured Notes
Viasat's subsidiaries, Connect Finco SARL and Connect U.S. Finco , plan to offer $1,250 million in Senior Secured Notes due 2029. The notes will be sold privately to qualified institutional buyers in the U.S. under Rule 144A and internationally under Regulation S. They will be secured by first-lien assets also securing the Issuers' existing senior secured credit facilities. The net proceeds, along with cash on hand, will be used to redeem a portion of the Issuers' outstanding 6.750% Senior Secured Notes due 2026 and cover related expenses. This offering is subject to market conditions and does not constitute a redemption notice for the 2026 Notes. The new notes are not registered under the Securities Act and cannot be sold in the U.S. without registration or exemption.
Le sussidiarie di Viasat, Connect Finco SARL e Connect U.S. Finco, pianificano di offrire 1.250 milioni di dollari in Note Senior Secured con scadenza nel 2029. Le note saranno vendute privatamente a investitori istituzionali qualificati negli Stati Uniti secondo la Regola 144A e a livello internazionale ai sensi della Regolamentazione S. Saranno garantite da beni con primo diritto di pegno che garantiscono anche le attuali strutture di credito senior secured degli Emittenti. I proventi netti, insieme alla liquidità disponibile, saranno utilizzati per riscattare una parte delle Note Senior Secured del 6.750% in circolazione con scadenza nel 2026 e coprire le spese correlate. Questa offerta è soggetta a condizioni di mercato e non costituisce una notifica di riscatto per le Note del 2026. Le nuove note non sono registrate ai sensi del Securities Act e non possono essere vendute negli Stati Uniti senza registrazione o esenzione.
Las subsidiarias de Viasat, Connect Finco SARL y Connect U.S. Finco, planean ofrecer $1,250 millones en Notas Senior Garantizadas con vencimiento en 2029. Las notas se venderán de forma privada a compradores institucionales calificados en EE. UU. bajo la Regla 144A y a nivel internacional bajo el Reglamento S. Estarán garantizadas por activos con primer gravamen que también aseguran las actuales facilidades de crédito garantizadas senior de los Emitentes. Los ingresos netos, junto con el efectivo disponible, se utilizarán para redimir una parte de las Notas Senior Garantizadas del 6.750% pendientes con vencimiento en 2026 y cubrir los gastos relacionados. Esta oferta está sujeta a condiciones de mercado y no constituye un aviso de redención para las Notas de 2026. Las nuevas notas no están registradas bajo la Ley de Valores y no pueden ser vendidas en EE. UU. sin registro o exención.
Viasat의 자회사인 Connect Finco SARL과 Connect U.S. Finco는 2029년 만기의 12억 5천만 달러 규모의 선순위 보장 채권을 제공할 계획입니다. 이 채권은 미국의 자격을 갖춘 기관 투자자에게 144A 규정에 따라 비공식적으로 판매되며, 국제적으로는 S 규정에 따라 판매됩니다. 채권은 발행자의 기존 선순위 보장 신용 시설과 함께 보장하는 첫 번째 담보 자산으로 보장됩니다. 순수익은 수중 유동성과 함께 2026년 만기 6.750% 선순위 보장 채권의 일부를 상환하는 데 사용됩니다 관련 비용을 충당하기 위해 사용됩니다. 이 제공은 시장 조건에 따라 달라지며 2026년 채권에 대한 상환 통지를 구성하지 않습니다. 새로운 채권은 증권법에 따라 등록되지 않으며 등록이나 면제 없이 미국에서 판매될 수 없습니다.
Les filiales de Viasat, Connect Finco SARL et Connect U.S. Finco, prévoient d'offrir 1,250 milliard de dollars en Obligations Senior Sécurisées arrivant à échéance en 2029. Les obligations seront vendues de manière privée à des acheteurs institutionnels qualifiés aux États-Unis en vertu de la Règle 144A et à l'international selon le Règlement S. Elles seront garanties par des actifs de premier rang qui garantissent également les facilités de crédit senior sécurisées existantes des Émetteurs. Les produits nets, ainsi que les liquidités disponibles, seront utilisés pour racheter une partie des Obligations Senior Sécurisées de 6,750% arrivant à échéance en 2026 et couvrir les frais connexes. Cette offre est soumise aux conditions du marché et ne constitue pas un avis de rachat pour les Obligations de 2026. Les nouvelles obligations ne sont pas enregistrées en vertu de la Loi sur les valeurs mobilières et ne peuvent être vendues aux États-Unis sans enregistrement ou exemption.
Die Tochtergesellschaften von Viasat, Connect Finco SARL und Connect U.S. Finco, planen, 1.250 Millionen Dollar in Senior Secured Notes mit Fälligkeit 2029 anzubieten. Die Notes werden privat an qualifizierte institutionelle Käufer in den USA gemäß Regel 144A und international gemäß Regulierung S verkauft. Sie werden durch Erstpfandvermögen gesichert, das auch die bestehenden Senior Secured Kreditfazilitäten der Emittenten sichert. Die Nettoerlöse werden neben liquiden Mitteln verwendet, um einen Teil der ausstehenden 6,750% Senior Secured Notes mit Fälligkeit 2026 einzulösen und damit verbundene Kosten zu decken. Dieses Angebot unterliegt den Marktbedingungen und stellt keine Rückzahlungsankündigung für die 2026er Notes dar. Die neuen Notes sind nicht nach dem Wertpapiergesetz registriert und können ohne Registrierung oder Ausnahme nicht in den USA verkauft werden.
- Raising $1,250 million through Senior Secured Notes offering
- Potential reduction of interest expenses by redeeming higher-interest 2026 Notes
- First-lien security on assets, providing strong collateral for the new notes
- Increase in long-term debt obligations
- Potential dilution of existing debt holders' claims on assets
Insights
Viasat's proposed
The first-lien security on the new notes suggests strong asset backing, potentially attractive to institutional investors. However, the impact on Viasat's overall debt profile and leverage ratios needs careful consideration. While this refinancing may optimize the capital structure, investors should monitor how it affects the company's long-term debt obligations and financial health.
The private placement nature of this offering limits participation to qualified institutional buyers, indicating a strategic approach to debt management aimed at sophisticated investors. This move could signal confidence in Viasat's financial outlook, but also highlights the company's ongoing need for substantial capital to support its operations and growth initiatives in the competitive satellite communications sector.
The proposed private placement of senior secured notes by Viasat's subsidiaries navigates complex securities regulations. By offering under Rule 144A and Regulation S, the company avoids the more stringent public registration requirements of the Securities Act, potentially expediting the capital raise process.
However, this approach restricts the notes to qualified institutional buyers in the U.S. and offshore investors, limiting the investor pool. The first-lien security structure on par with existing senior secured credit facilities suggests a careful balancing act to maintain equitable treatment among creditors while optimizing the capital structure.
Investors should note the explicit disclaimer regarding the absence of a formal redemption notice for the Inmarsat 2026 Notes. This legal nuance preserves flexibility for Viasat but also underscores the tentative nature of the refinancing plan. The company's adherence to Rule 135c in this announcement demonstrates regulatory compliance while managing market communications, a important aspect in private placements of this magnitude.
The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers in
The Issuers intend to use the net proceeds from the offering, together with cash on hand, to redeem a portion of the Issuers' outstanding
The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in
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, the use of proceeds therefrom and the redemption of the 2026 Inmarsat Notes in connection therewith, and are generally identified with words such as "believe," "could," "expect," "intend," "may," "plan," "will" and similar expressions. Such statements reflect management's current expectations and judgment 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 and Quarterly Reports on Form 10-Q. 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
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