RigNet Inc. (Nasdaq: RNET) entered into a second amendment and restated credit agreement with Bank of America N.A, as administrative agent, and the lenders party thereto.
RigNet is a leading global provider of managed remote communications, systems integration and collaborative applications dedicated to the oil and gas industry, focusing on offshore and onshore drilling rigs, energy production facilities and energy maritime.
The amendment provides for a $60 million term loan facility and a $125 million revolving credit facility, which includes a $15 million sublimit for the issuance of standby letters of credit. The company had $54.6 million in term loans outstanding immediately prior to the second amendment and restatement and $60 million outstanding immediately after the second amendment and restatement. The new credit facility will allow the company to continue to fund its growth opportunities and reduce total borrowing costs.
"This refinancing, led by Bank of America, provides RigNet with increased financial flexibility to execute on our 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. Bank of America has been RigNet's strategic financing partner since 2009. We appreciate the confidence that Bank of America and the other lenders in the syndicate, including Compass Bank, Wells Fargo Bank and BOKF (Bank of Texas), have shown in RigNet and this management team," Marty Jimmerson, RigNet's chief financial officer, said in the release.
"RigNet has a strong track record of operational excellence and market growth. As a long-term strategic partner, we are pleased to lead a credit facility that provides the flexibility for RigNet to execute on its global expansion strategy," Lisa Barksdale, Bank of America's global commercial banking executive for South Texas, said in the release.
RigNet Inc. is headquartered in Houston.