RigNet has successfully amended its senior secured credit facility with its existing bank group led by Bank of America as administrative agent.
Among other things, the amendment:
- Increases the revolving facility $15 million to $100 million and extends its maturity to August 31, 2022
- Replaces the outstanding term notes by transferring $14.5 million to the revolving facility and establishing a new $16 million term facility with maturity of March 31, 2022
- Sets the allowable consolidated leverage ratio at 3.25 times consolidated EBITDA through third quarter 2020, thereafter stepping down to 3.00 times through second quarter 2021, thereafter stepping down to 2.75 times through the maturity date of the revolving facility
- Maintains the attractive pricing grid currently enjoyed by the company
- Establishes a $30 million accordion
“We are very pleased by and appreciative of the unanimous support we received from our bank group in amending our credit facility to not only extend the term, but improve cash flow by reducing amortization and providing a payment holiday in this first quarter,” said Lee M. Ahlstrom, RigNet’s senior vice president and chief financial officer.
RigNet’s bank group includes Bank of America, BBVA USA, First Horizon (formerly First Tennessee), and Woodforest National Bank.
Houston-based RigNet delivers advanced software and communications infrastructure that allow customers to realize the business benefits of digital transformation.