Duo Dial Up Lenders For Hughes Network

JP Morgan and Bear Stearns are leading $375 million of loans for Hughes Network Systems (HNS).

  • 29 Apr 2005
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JP Morgan and Bear Stearns are leading $375 million of loans for Hughes Network Systems (HNS). The debt consists of a $50 million revolver, a $275 million first lien and a $50 million second-lien tranche. Pricing is LIBOR plus 3% on the revolver and term loan "B" and LIBOR plus 6 3/4% on the second-lien. The facility replaces a proposed $50 million revolver and a $325 million senior notes offering, which was shelved due to choppiness in the high-yield market earlier this month.

SkyTerra Communications, which is 63% owned by private equity fund Apollo Management, is buying 50% of HNS. The facility will be used to finance the acquisition and complete the company's SPACEWAY 3 satellite.

Moody's Investors Service assigned B1 ratings to the first-lien debt and a B3 rating to the second lien. Moody's said the ratings reflect HNS' challenges from land-based competition, low margins and significant risk and spending associated with launching the SPACEWAY 3 satellite in late 2006.

  • 29 Apr 2005

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 15,256 32 16.83
2 Bank of America Merrill Lynch (BAML) 10,179 30 11.23
3 Citi 9,751 23 10.76
4 Lloyds Bank 7,329 24 8.09
5 JP Morgan 6,580 10 7.26

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 RBC Capital Markets 801.51 2 17.07%
2 Wells Fargo Securities 606.78 3 12.93%
3 Credit Suisse 407.63 1 8.68%
3 Barclays 407.63 1 8.68%
5 Deutsche Bank 331.13 2 7.05%