Global Eagle is Taking Action to Strengthen Our Business and Position Our Company for Long-Term Success
Global Eagle is implementing a plan to strengthen our business and position our company for the long-term as we continue serving our customers around the world with best-in-class media, content and connectivity solutions for aviation, maritime, enterprise and government mobility end-markets.
We have agreed on the terms of a potential transaction in which Global Eagle will be acquired by a prestigious group of investors comprising approximately 90% of our first-lien lenders, led by Apollo, BlackRock, Sound Point and Eaton Vance, for total consideration of $675 million. To implement the sale, we have initiated a court-supervised process under Chapter 11.
During and following this process, Global Eagle will continue operating and serving our customers in the ordinary course, and the planned ownership transition is not expected to have any material impact on our operations. This transaction will reduce our total debt by approximately $475 million and significantly increase our liquidity, positioning Global Eagle to continue driving long-term innovation and growth and serving our customers around the world.
We have received interim court approval to access $30 million of the $80 million in debtor-in-possession financing we obtained from the investor group. We expect this new financing, together with cash on hand and cash generated from ongoing operations, to provide ample liquidity to support the business during the sale process. The investor group has also agreed to provide additional investment in the business in the form of a $125 million exit facility, subject to certain conditions.
We are confident in our future and excited about the opportunities ahead to build on our strong foundation as the world’s leading entertainment and connectivity provider for mobility, driving operational excellence, growth and innovation.
We intend to move through this process as quickly and efficiently as possible.
Global Eagle Receives Court Approval for “First Day” Motions to Support Business Operations
Global Eagle Reaches Agreement on Definitive Asset Purchase Agreement with Substantial Majority of Senior Secured First-Lien Term Loan Investors
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