Viasat announces $1.975 billion senior secured notes in California

On September 11, 2024, Viasat, Inc. announced the upsizing and pricing of its offering of senior secured notes, increasing the amount from $1,250 million to $1,975 million. The notes, which carry an interest rate of 9.000% per annum, are set to mature in 2029 and will be issued at their face value. The offering is being conducted through private placements to qualified institutional buyers in the U.S. and internationally. The proceeds from this offering will primarily be used to redeem the existing 6.750% Senior Secured Notes due 2026, known as the Inmarsat 2026 Notes, along with covering related fees and expenses. This strategic move is part of Viasat's broader financial management efforts to optimize its debt structure and reduce interest expenses. The notes will be secured on a first-lien basis by assets that also back the existing senior secured credit facilities of the Issuers, Connect Finco SARL and Connect U.S. Finco LLC, which are wholly-owned indirect subsidiaries of Viasat. The closing of the sale is anticipated to occur around September 25, 2024, pending customary conditions. This offering is significant for Viasat as it reflects the company's ongoing commitment to strengthening its financial position. However, the notes have not been registered under the Securities Act, meaning they cannot be sold in the U.S. without proper registration or exemption, highlighting the regulatory complexities involved in such financial transactions.