Avanti Communications has entered into an agreement with HPS for a $100m three-year super senior facility.
Avanti said proceeds from the super senior facility replace an existing undrawn higher cost $50m debt facility and provided $50m additional new liquidity.
It said this would be used to complete the construction and launch of the Company's HYLAS 4 satellite and, subject to certain conditions, may be used to redeem or repurchase some of the company's outstanding high yield notes.
It said the interest rate was 7.5% p.a, versus a rate of over 10% p.a. on the facility that was being replaced.
It said: "In order to incur the super senior facility, the company has received sufficient consents from holders of its outstanding notes to certain amendments to the indentures governing the notes and the intercreditor agreement, including amendments to the EBITDA financial covenant such that the first testing date is to be moved from 30 June 2017 to 31 March 2018 and the thresholds are to be lowered."
Chairman Paul Walsh said "This transaction is a positive step for the Company to lower its cost of capital with a prominent global investor and provide additional headroom in a crucial period with the launch of HYLAS 4 pending and customer demand for our products recovering."
At 8:03am: (LON:AVN) Avanti Communications Group PLC share price was +1.5p at 9.5p