Speedcast Enhances Debt Funding Structure
Sydney, July 30, 2019 AEST (ABN Newswire) - Speedcast International Limited (
ASX:SDA) (7SC:FRA) (SPPDF:OTCMKTS), the world's most trusted provider of remote communication and IT solutions, is pleased to announce that it has received majority consent from its Revolving Credit Facility ("RCF") lenders to amend the financial covenant applicable under its Senior Secured Facility. The amendment increases the maximum Net Leverage Ratio (net debt to EBITDA) from 4.0x to 4.5x, and applies from the period ending 31 December 2019 through to, and including, the period ending 31 December 2020.
The Net Leverage Ratio is the sole financial covenant under Speedcast's Senior Secured Facility, and applies when drawings under the RCF exceed 35% of the RCF limit. Under the relevant agreements, the Net Leverage Ratio is calculated on a proforma basis and includes the proforma benefits from the Company's recently announced reorganisation initiatives.
The maximum Net Leverage Ratio in the financial covenant will reduce from 4.5x back to 4.0x upon payment of any dividends or certain other restricted payments (such as discounted buybacks).
While the Company does not expect its Net Leverage Ratio to reduce in 2019, it is a key management priority to reduce it in 2020.
The Board remains confident that Speedcast's Net Leverage Ratio will be below 4.0x at the end of 2019. The added headroom provided by increasing the maximum Net Leverage Ratio to 4.5x provides greater certainty that the Company will continue to meet its financial covenant and not require additional equity to be raised.
About Speedcast International Ltd
Speedcast International Ltd (ASX:SDA) is the world's most trusted communications and IT services provider, delivering critical communications solutions to the Maritime, Energy, Mining, Media, Telecom, Cruise, NGO, Government, and Enterprise sectors. With more satellite capacity than any other provider, Speedcast enables faster, seamless pole-to-pole coverage from a global hybrid satellite, fiber, cellular, microwave, MPLS, and IP transport network with direct access to public cloud platforms. The company also integrates differentiated technology offerings that provide smarter ways to communicate and distribute content, manage network and remote operations, protect and secure investments, and improve the crew and guest experience. With a passionate customer focus and a strong safety culture, Speedcast serves more than 3,200 customers in over 140 countries. Learn more at www.speedcast.com.
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