Photo: Global Eagle Entertainment

[Via Satellite 01-06-2016] Global Eagle Entertainment (GEE) has refinanced its existing credit facilities with a new $500 million senior-secured term-loan facility and a new $85 million senior-secured revolving credit facility. According to a statement released Jan. 6, the company will use the proceeds of the new term-loan facility to pay down all of the company’s existing term-loan and revolving-credit facility debt.

“With the closing of these new facilities, we have improved our balance sheet with a lower effective interest rate to support our current growth initiatives and increased our overall liquidity,” said Dave Davis, chief executive officer of GEE.

The new senior secured credit agreement includes a 6-year, $500 million term-loan facility at an interest rate of LIBOR+600 basis points. It also includes a 5-year revolving credit facility initially priced at LIBOR+600 basis points, which increases the company’s revolving borrowing capacity to $85 million from $75.5 million under the previous revolving credit facility. At closing, the company had no borrowings outstanding under its new revolving credit facility.