AIG Provides $45MM Term Loan to ORBCOMM
ORBCOMM, a global satellite data communications company, announced that it completed a debt financing in the form of a five-year term loan through a senior secured note agreement in the principal amount of $45 million with AIG Asset Management (U.S.). The five-year term loan has no required principal amortization and a fixed interest rate of 9.5%, payable quarterly, for the life of the loan.
The company intends to use the proceeds of the AIG financing to facilitate growth opportunities such as new services, product offerings, geographic distribution and potential acquisitions into key vertical markets. The proceeds will also provide a capital expenditure cushion.
Sagent Advisors advised ORBCOMM on the financing. Milbank, Tweed, Hadley & McCloy acted as legal advisor to ORBCOMM.
Fort Lee, NJ-based ORBCOMM is a global satellite data communications company, specializing in Machine-to-Machine (M2M) communications. Its customers include Caterpillar, Doosan Infracore America, Hitachi Construction Machinery, and Hyundai Heavy Industries, Asset Intelligence, Komatsu, Manitowoc Crane and Volvo Construction Equipment among other industry leaders.