ORBCOMM Inc. (ORBC), a global provider of Machine-to-Machine (M2M) solutions, today announced that it has entered into a multi-facility Credit Agreement providing up to $160 million with Macquarie Group (Macquarie). As part of the Credit Agreement, ORBCOMM will have access to a $70 million initial term loan facility, a revolving credit facility for up to $10 million as well as acquisition term loan facilities for up to $80 million for potential growth opportunities.
The initial term loan will be used to repay in full the Companys $45 million, 9.50% fixed rate Senior Secured Notes due in 2018, and the balance will be available for general corporate purposes. The loan facilities have no scheduled principal amortization until the five-year maturity date and will carry an interest rate of LIBOR (floor of 100 basis points) plus a margin of 475 basis points.
We continue to benefit from our enhanced credit profile to both improve our balance sheet and facilitate our growth strategy, which may include new services, product offerings, geographic distribution and potential acquisitions, said Marc Eisenberg, Chief Executive Officer of ORBCOMM. Our prudent capital structure and focus on accretive investments will ensure that we support our growth in a way that creates value for our shareholders.
Raymond James advised ORBCOMM on the financing. Milbank, Tweed, Hadley & McCloy LLP acted as legal advisor to ORBCOMM.
For additional information, please refer to our SEC (SCUR) filing on Form 8-K dated October 6, 2014.
About ORBCOMM Inc.
ORBCOMM is a global provider of Machine-to-Machine (M2M) solutions. Its customers include Caterpillar Inc., Doosan Infracore America, Hitachi Construction Machinery, Hyundai Heavy Industries, I.D. Systems, Inc., Komatsu Ltd., Cartrack (Pty.) Ltd., and Volvo Construction Equipment, among other industry leaders. By means of a global network of low-earth orbit (LEO) satellites and accompanying ground infrastructure as well as our Tier One cellular partners, ORBCOMMs low-cost and reliable two-way data communication services track, monitor and control mobile and fixed assets in our core markets: commercial transportation; heavy equipment; industrial fixed assets; marine; and homeland security.
ORBCOMM is an innovator and leading provider of tracking, monitoring and control services for the transportation market. Under its ReeferTrak®, GenTrakTM, GlobalTrak®, and CargoWatch® brands, the company provides customers with the ability to proactively monitor, manage and remotely control their cold chain and dry transport assets. Additionally, ORBCOMM provides Automatic Identification System (AIS) data services for vessel tracking and to improve maritime safety to government and commercial customers worldwide. ORBCOMM is headquartered in Rochelle Park, New Jersey and has its Innovation & Network Control Center in Sterling, Virginia. For more information, visit www.orbcomm.com.
About Macquarie Group
Macquarie Group (Macquarie) is a leading provider of banking, financing, advisory, investment and fund management services. Founded in 1969, Macquarie employs more than 13,900 people in 28 countries. Part of Macquarie’s Corporate and Asset Finance business, Macquarie Lending focuses on corporate and commercial real estate clients, and has provided more than $25 billion of new lending commitments to over 400 clients globally since 2009. Macquarie Lending’s expertise goes beyond traditional financing to adapt solutions to meet individual client needs. As a leading primary lender and acquirer of secondary loans across North America, Europe, and Australasia, Macquarie Lending has more than 80 experienced lending and investing professionals located in New York, Chicago, London and Sydney.
