The company has borrowed the full amount of the term loan facility to fund its previously announced cash tender offer to purchase any and all of its outstanding 10.5% Senior Secured Notes due 2014 and related consent solicitation. Holders of 100% of the Notes had tendered and not validly withdrawn their notes in the cash tender offer as of 5:00 p.m., New York City time, on October 11, 2011.
The Company will use remaining cash proceeds for general corporate purposes, which may include acquisitions and share repurchases. The revolving credit facility remains undrawn at closing.
Borrowings under the term loan facility will bear interest at an amount equal to the adjusted LIBOR rate plus 4.50%. The credit agreement contains affirmative and negative covenants that the company believes are usual and customary for a senior secured credit agreement. The credit agreement also requires the company to maintain a maximum leverage ratio and a minimum interest coverage ratio.
"We are very pleased to have executed and priced this transaction given the current volatile market conditions," said Yancey Spruill, chief financial officer. "Financing at a lower cost of capital is a testament to the quality of our company and the strength of our business model. We will use the proceeds to provide increased flexibility in executing our growth strategy and in building our capabilities through acquisitions."
Morgan Stanley Senior Funding, Inc. and J.P. Morgan Securities LLC served as joint lead arrangers and joint lead bookrunners for this transaction.
About DigitalGlobe
DigitalGlobe is a leading global provider of commercial high-resolution earth imagery products and services. Sourced from our own advanced satellite constellation, our imagery solutions support a wide variety of uses within defense and intelligence, civil agencies, mapping and analysis, environmental monitoring, oil and gas exploration, infrastructure management, Internet portals and navigation technology. With our collection sources and comprehensive ImageLibrary (containing more than one billion square kilometers of earth imagery and imagery products) we offer a range of on- and off-line products and services designed to enable customers to easily access and integrate our imagery into their business operations and applications. For more information, visit
www.digitalglobe.com.
DigitalGlobe is a registered trademark of DigitalGlobe.
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