The Net Leverage Ratio is the sole financial covenant under Speedcast's Senior Secured Facility, and applies when drawings under the RCF exceed 35% of the RCF limit. Under the relevant agreements, the Net Leverage Ratio is calculated on a proforma basis and includes the proforma benefits from the Company's recently announced reorganisation initiatives.
The maximum Net Leverage Ratio in the financial covenant will reduce from 4.5x back to 4.0x upon payment of any dividends or certain other restricted payments (such as discounted buybacks).
While the Company does not expect its Net Leverage Ratio to reduce in 2019, it is a key management priority to reduce it in 2020.
The Board remains confident that Speedcast's Net Leverage Ratio will be below 4.0x at the end of 2019. The added headroom provided by increasing the maximum Net Leverage Ratio to 4.5x provides greater certainty that the Company will continue to meet its financial covenant and not require additional equity to be raised.
About Speedcast International Ltd
Speedcast International Ltd (ASX:SDA) is the world's largest remote communications and IT services provider. The company delivers critical communications solutions through its multi-access technology, multi-band and multi-orbit network of 80+ satellites and an interconnecting global terrestrial network, bolstered by extensive local support from 40+ countries. Speedcast is uniquely positioned as a strategic partner, tailoring communications, IT and digital solutions to meet customer needs and enable business transformation. The company provides managed information services with differentiated technology offerings, including cybersecurity, crew welfare, content solutions, data and voice applications, IoT solutions and network systems integration services. With a passionate customer focus and a strong safety culture, Speedcast serves more than 3,200 customers in over 140 countries in sectors such as Maritime, Energy, Mining, Enterprise, Media, Cruise, Humanitarian and Government. Learn more at http://www.speedcast.com
ContactClive Cuthell, CFO
P: +61 2 9086 2785
P: +61-400 009 774
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