Canada: UrtheCast has announced that it has entered into a binding credit agreement (the “Credit Agreement”) for the previously announced US$142 million senior secured credit facility (the “UrtheDaily Facility”) with UrtheDaily Funding L.P., as the initial lender. The proceeds from the UrtheDaily Facility will be used to finance the construction, launch and deployment of six satellites (the “UrtheDaily Constellation”), and for related working capital and general corporate purposes.
UrtheCast is also pleased to announce the issuance of a receipt for a final prospectus qualifying the distribution of notes and warrants underlying the subscription receipts issued under the $21.7 million brokered private placement that formed part of the previously announced $34.4 million private placement that closed on May 3, 2018 (the “Subordinated Capital Financing”).
The Lenders under the UrtheDaily Facility will fund the principal amount in equal amounts on each of the first drawdown date and the final drawdown date, subject to the Company meeting certain conditions precedent. The UrtheDaily Facility will mature on the fifth anniversary of the closing date, upon which it will be repayable in full. The Company may also refinance the UrtheDaily Facility at any time with no break fee.
The first drawdown of the UrtheDaily Facility is subject to a number of conditions, including the Company maintaining certain maximum leverage and total contracted value ratios and the completion of the syndication of the UrtheDaily Facility. As announced on December 5, 2017, the Company has signed binding data subscription contracts for the UrtheDaily Constellation totaling more than $100 million over the duration of the contracts. These long-term revenue commitments from these anchor customers and multiple incremental customers are expected to contribute to a consistent revenue stream for up to seven years.
The UrtheDaily Facility will be secured by a first priority security interest in substantially all of the assets of the Company and its subsidiaries. The Credit Agreement contains customary financial covenants as well as affirmative and negative covenants, including certain limitations on indebtedness, liens, investments, dividends, disposition of assets, change in business and transactions with affiliates.