Global Eagle Entertainment has agreed to a US$675 million acquisition which will reduce its total debt by approximately $475 million and obtain significant additional liquidity.
The stalking horse transaction, led by a group of the company’s leading investors, will furnish an $80 million in debtor-in-possession (DIP) financing, as well as an additional investment in the business in the form of a $125 million exit facility, which would include assumption or refinancing of the DIP financing.
The proposed transaction will be implemented under the terms of a Restructuring Support Agreement reached by Global Eagle and the Investor Group.
Jeffrey Rosen, Managing Director with the Credit business segment of Apollo Global Management said: “Global Eagle is a market leader in delivering in-flight and at-sea passenger experiences with entertainment, content and connectivity. While the Company reports that it has been impacted in recent months by COVID-19, we believe it benefits from a blue-chip customer base, industry-leading partnerships and an innovative platform built through years of strategic investments in technology. We believe Global Eagle’s services will continue to be core to the passenger experience over the long term and see significant opportunities ahead for the Company to continue driving growth and innovation.”