Viasat Inc. Ratings Placed On CreditWatch Negative On Announced Acquisition Of Inmarsat

U.S.-based satellite provider Viasat Inc. has announced plans to purchase U.K.-based satellite provider Inmarsat for $7.3 billion (including $3.4 billion of assumed debt, $850 million of cash, and 46 million shares of Viasat stock valued at about $3.1 billion). Therefore, we anticipate its S&P Global Ratings-adjusted debt to EBITDA will likely rise modestly above our existing 5x downgrade trigger following the close of the transaction in mid-2022 from the mid-3x area currently. We placed all of our ratings on Viasat, including our 'BB-' issuer credit rating, on CreditWatch with negative implications. The CreditWatch placement reflects that we could lower our issuer credit rating on the company by one-notch or affirm our ratings following a more in-depth analysis of its growth

...November 9, 2021 - U.S.-based satellite provider Viasat Inc. has announced plans to purchase U.K.-based satellite provider Inmarsat for $7.3 billion (including $3.4 billion of assumed debt, $850 million of cash, and 46 million shares of Viasat stock valued at about $3.1 billion). - Therefore, we anticipate its S&P Global Ratings-adjusted debt to EBITDA will likely rise modestly above our existing 5x downgrade trigger following the close of the transaction in mid-2022 from the mid-3x area currently. - We placed all of our ratings on Viasat, including our '##-' issuer credit rating, on CreditWatch with negative implications. - The CreditWatch placement reflects that we could lower our issuer credit rating on the company by one-notch or affirm our ratings following a more in-depth analysis of its growth potential in the mobility and internet of things (IoT) markets, as well as its capital spending plans, anticipated synergies, integration plans, ability to reduce leverage and the competitive...

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