Viasat Sells $400M of Senior Notes; Signs MetTel Internet Service Agreement
Viasat is selling $400 million worth of senior notes. In a Wednesday announcement, the satellite operator said the net proceeds will be used to repay debt and to finance general purposes including the purchase, launch, and operation of satellites, potential acquisitions, joint ventures and strategic alliances, working capital or capital expenditures.
Viasat said notes were offered and sold to qualified institutional buyers in the United States, and will have an interest rate of 6.5%. The closing of the sale of the notes is expected to occur on or about June 24, 2020.
Separately on Thursday, Viasat announced its business satellite internet service will be offered through MetTel, an integrated digital communications solutions provider. MetTel plans to offer Viasat’s satellite internet service as an option to MetTel’s business and government customer base, which will expand its coverage options in remote locations. The satellite internet service will initially be available in the contiguous U.S., with the potential to expand into Puerto Rico, Mexico, and other international markets.
“We’re delighted to bring the MetTel network into the escalating space race for business,” said Marshall Aronow, MetTel CEO. “Including Viasat’s satellite connectivity into our portfolio of advanced services, from primary connectivity to our Gartner-recognized, best-in-class SD-WAN solutions, allows us to provide customers more options for reliable, high-speed broadband communications.”