Inmarsat cuts term B to $1.3 billion, ups spread to SOFR plus 450 bps

By Sara Rosenberg

New York, March 13 – Inmarsat (Connect Finco Sarl/Connect U.S. Finco LLC) downsized its term loan B due September 2029 to $1.3 billion from $1.4 billion and increased pricing to SOFR plus 450 basis points from talk in the range of SOFR plus 400 bps to 425 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 98 from 98.5 and some revisions were made to documentation, the source said.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

BofA Securities Inc., Citizens, DNB, Goldman Sachs Bank USA, ING, JPMorgan Chase Bank, MUFG and NatWest are the arrangers on the deal. HSBC Securities (USA) Inc., Intesa, Natixis and UBS Investment Bank are the co-managers.

Recommitments were scheduled to be due at 11:30 a.m. ET on Wednesday, the source added.

Proceeds will be used to extend a portion of the company’s existing outstanding term loans and to pay transaction costs. The non-extended term loan will be sized at $300 million, versus roughly $284 million under the original plans as cash will be used to refinance some of the non-extended term loan debt.

Inmarsat, part of the ViaSat group, is a provider of mobile satellite communications services.

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