Morgan Stanley Commits $250 Million Term Loan to Sirius

Sirius Satellite Radio has obtained a $250 million senior secured term loan commitment from Morgan Stanley Senior Funding Inc., Sirius announced June 5.

The facility will mature in five and one-half years and have covenants substantially similar to those under the company’s existing 9-5/8 percent senior notes, with proceeds to be used for general corporate purposes. Morgan Stanley is acting as the sole lead arranger and has committed to provide the entire principal amount of the facility, subject to customary closing conditions.

In a statement, David Frear, Sirius’ chief financial officer and executive vice president, said "this transaction takes advantage of favourable market conditions and significantly strengthens our balance sheet."

Shin Satellite Sells Shenington

Shin Satellite is teaming with Asia Mobile Holdings (AMH) as Shin aims for a better performance in Cambodia and Laos, the company announced June 4.

The satellite operator said it is selling its 49 percent stake in Shenington Investments to AMH for $200 million. Shenington is an investment holding company with a 100 percent stake in Cambodia Shinawatra Co. and 49 percent stake in Lao Telecommunications Co.

With a 51 percent stake, Shin will remain the controlling shareholder of Shenington. The transaction values Shenington at an equity value of approximately $400 million.

Worldspace Satellite Radio Completes Refinancing of $155 Million Convertible Notes

Worldspace Satellite Radio closed the refinancing of its $155 million in convertible notes, redeeming $50 million of the existing notes for cash and issuing new notes and warrants in exchange for the remaining existing convertible notes, the company announced June 1. The senior notes hold a first priority lien on Worldspace’s assets, with the new convertible notes holding a second priority lien.

The refinancing eliminated the right of the noteholders to require Worldspace to redeem the existing convertible notes on Dec. 30, 2007. Worldspace is required to prepay the senior secured notes from any new financing and from certain other available cash.

Worldspace chairman and CEO Noah A. Samara said in a statement that the move would afford the company leeway to "execute our streamlined 2007 plan [to pursue opportunities] particularly in Europe, where we continue to focus on readying the Italian business, and India, and hope to return to the markets with significant business achievements."

Gateway Gets Extra Finance for DTH Platform

Gateway Broadcast Services, a subsidiary of Gateway Telecommunications, has raised an additional $40 million as it looks to make GTV – its new pan-Africa, direct-to-home (DTH), pay-TV service – a success on the continent.

GTV aims to be Africa’s first widely accessible pay-TV service when the service launches this month in East Africa.

The effort marks the third significant fundraising program completed by the telco throughout the last few months: In November 2006 it raised $115 million from the European high-yield bond market, and in May it raised another $32.5 million to finance the acquisition of GS Telecom, an African provider of data connectivity services to corporate customers.

Pace Optimistic Ahead of Results

Pace Micro Technology expected its performance for the year ending June 2 to be slightly ahead of current market expectations, the company announced June 4.

The technology vendor, which works with a number of DTH operators, issued the positive trading update ahead of its full-year results, to be announced July 24.

Pace credited improved performance in the U.S. market for its optimism ahead of its results. The company also cited strong demand for high-definition (HD) and personal video recorder (PVR) products as other factors behind the trading update.