U.S.-based communications firm ViaSat, Inc. entered into a second amendment to its Revolving Credit Agreement.
The amendment provides for an increase in the size of the revolving line from $500m to $800m, and the extension of the maturity from November 2018 to May 2021 (or, if more than $200.0 million of ViaSat’s 6.875% senior notes due 2020 are then outstanding and certain conditions are met, March 2020), and inclusion of additional covenant flexibility.
Borrowings under the Revolving Credit Agreement bear interest at the Eurodollar rate plus an applicable margin that is based on ViaSat’s total leverage ratio.
The Revolving Credit Agreement contains financial covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio. In addition, the Revolving Credit Agreement contains covenants that restrict, among other things, ViaSat’s ability to sell assets, make investments and acquisitions, make capital expenditures, grant liens, pay dividends and make certain other restricted payments.