ROCHELLE PARK, NJ, 02 Dec. 2020 (GLOBE NEWSWIRE) – ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Machine-to-Machine (M2M) and Internet of Things (IoT) solutions, today announced that it has entered into a facility to $ 200 million five-year term loan (the “Term Loan”) and a $ 50 million revolving credit facility. Concurrently, the Company completed the redemption of all of its outstanding 8.00% Senior Secured Notes (the “Notes”) and terminated its previous $ 25 million revolving credit facility.
“As part of the next phase of ORBCOMM’s evolution, we have taken steps to strategically improve the capital structure of the company by replacing the old high yield notes with this term loan at an interest rate. significantly lower, ”said Marc Eisenberg, CEO of ORBCOMM. Officer. “With multiple acquisitions and a full integration effort behind us, along with lower interest costs, we are in an excellent position to execute our business plan, reduce leverage levels and focus on organic growth. . “
The term loan and revolving credit facility bear interest at LIBOR plus an applicable margin based on the Company’s consolidated net leverage ratio and will mature on December 2, 2025. The proceeds of the term loan, together with $ 20 million from the new revolving and on-hand credit facility was used to repay the Company’s outstanding notes on their terms at 104% of their principal amount, plus accrued and unpaid interest until December 2, 2020, but excluding. At the end of this repayment, none of the 8.00% tickets remained pending.
JPMorgan Chase Bank, NA, acted as administrative agent, principal arranger and associate bookrunner for the financing. Funding was provided by a syndicate of banks.
Additional details regarding the terms of the new facilities are discussed in the company’s current report on Form 8-K filed with the Securities and Exchange Commission.
About ORBCOMM Inc.
ORBCOMM is a global leader and innovator in the Industrial Internet of Things, providing solutions that connect businesses to their assets to deliver increased visibility and operational efficiency. The company offers a wide range of asset monitoring and control solutions, including seamless satellite and cellular connectivity, unique hardware and powerful applications, all backed by end-to-end customer support from installation to deployment. through customer service. ORBCOMM has a diverse customer base, including leading OEMs, solution customers and distribution partners spanning transportation, supply chain, warehousing and inventory, heavy equipment, marine transportation, natural resources and government. For more information, visit www.orbcomm.com.
Certain statements discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to our plans, objectives and expectations for future events and include statements about our expectations, our beliefs, plans, goals, intentions, assumptions and other statements that are not historical facts. These forward-looking statements, including those concerning the Company’s expectations, are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from the results, projected, expected or implied by the forward-looking statements, including some are beyond the control of the Company, which may result in actual results, performances or achievements of the Company, or results of the industry, materially different from the future results, performances or achievements expressed or implied by these forward-looking statements. In addition, special attention should be paid to the various factors described in Part I, point 1A. “Risk Factors” and Part II, Section 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our Annual Report on Form 10-K, and other documents, filed with the Securities and Exchange Commission. The Company assumes no obligation to publicly review forward-looking statements or cautionary factors, except as required by law.
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