Global Eagle Entertainment has completed a $40 million upsizing of its senior secured term loan due 2023, as well as an amendment to its term loan to reduce scheduled principal repayments over the next six quarters by an aggregate of approximately $26 million.
Net of fees and expenses, the amendment will result in approximately $61 million of incremental liquidity over the next 18 months. This supplements the company’s approximately $49 million of liquidity as of June 30, 2019, which includes cash and unused revolver capacity, and further enables the company to focus on executing its growth plans.
According to a related 8-k filing, Citibank served as administrative agent for the first lien amendment.
The company also entered into a second amendment to securities purchase agreement and amendment to security agreement among the company, the guarantors, and Cortland Capital Market Services as collateral agent.
“We are pleased to announce this amendment, which strengthens our liquidity and positions us to deliver significant long-term shareholder value as we continue our transition to sustainable, positive free cash flow generation.” Josh Marks, chief executive officer of Global Eagle, continued, “We are grateful for our strong collaborative partnership with our lenders. We see significant opportunities as we continue to serve our customers well and innovate in our markets.”
Global Eagle intends to use the proceeds to repay principal balance on its revolving credit facility and anticipates using the remaining proceeds for growth, cost initiatives and other general corporate purposes.
Global Eagle is a provider of media, content, connectivity and data analytics to markets across air, sea and land.
