RigNet Refinances Loans, gets US$ 60-M Credit Facility
Houston, TX, Oct. 9, 2013 — RigNet, Inc. has entered into a new credit agreement with Bank of America, N.A. for its business expansion.The new agreement gave RigNet a US$ 60 million term loan and a US$ 125 million revolving credit facility, which includes a US$15 million sublimit for the issuance of standby letters of credit.
The company had an outstanding loan of US$ 54.6 million prior to the new agreement with Bank of America. The bank, which is the credit facility’s administrative agent, has been RigNet's strategic financing partner since 2009.
RignNet, a global provider of managed remote communications, systems integration and collaborative applications dedicated to the oil and gas industry, said the new credit facility will allow the company to continue to fund its growth opportunities and reduce total borrowing costs.
Marty Jimmerson, chief financial officer, said the refinancing provides RigNet with increased
financial flexibility to execute on its organic and inorganic growth opportunities.
“We anticipate using a combination of cash on hand and the new revolver to finance the $25 million acquisition of Inmarsat's Energy Broadband business expected to close during or before the first quarter of 2014,” he said.
Lisa Barksdale, Bank of America's Global Commercial Banking executive for South Texas, noted, that RigNet has a strong track record of operational excellence and market growth.
“We are pleased to lead a credit facility that provides the flexibility for RigNet to execute on its global expansion strategy,” she said.
Related Articles:
