ORBCOMM, a number one supplier of ELDs and visibility options, has made a change in its capital construction once more.
On account of the restructuring, S&P International Scores has withdrawn its scores on ORBCOMM. S&P had a B- score on ORBCOMM and a unfavourable outlook on the time of the withdrawal.
B- is six notches beneath the cutoff between funding grade and non-investment grade debt at S&P International Scores. A unfavourable outlook means situations are in place for a possible downgrade within the score although a unfavourable or constructive score can keep in place for months or years with none change truly happening.
ORBCOMM didn’t reply to e mail requests from BigRig for additional remark.
ORBCOMM was a publicly-traded firm when it was acquired in 2021 by GI Companions, a non-public fairness firm.
In its ready assertion asserting the refinancing, ORBCOMM stated the debt package deal totaled $460 million. It recognized three firms as having elements of the refinancing: Carlyle, the personal credit score group of Bain Credit score, and Morgan Stanley Personal Credit score.
“The financing package deal refinances ORBCOMM”s current debt services and consists of dedicated, undrawn capital capability via a delayed draw time period mortgage facility and a revolving credit score facility, offering ORBCOMM with dedicated capital and adaptability,” the corporate stated in a ready assertion. “The transaction displays sturdy help from main institutional traders and underscores confidence in ORBCOMM’s market place, strategic route and long-term progress alternative.”
In response to the assertion, the financing package deal refinances current ORBCOMM debt “and consists of dedicated undrawn capital capability via a delayed draw time period mortgage facility and a revolving credit score facility, offering ORBCOMM with dedicated capital and adaptability.”
The transfer got here nearly a yr after one other change in ORBCOMM’s capital construction. In April 2025, a special division of S&P International than the Scores group, its Market Intelligence unit, took a stake in ORBCOMM. The scale of the stake was not disclosed.
On the similar time, S&P International acquired the Automated Identification System (AIS) information companies enterprise of ORBCOMM.
Debt has lengthy been one thing of a burden at ORBCOMM.
ORBCOMM’S score at S&P International (NYSE: SPGI) was lower in July 2022 to B- from B on what the corporate stated have been issues about income, EBITDA margins and the corporate’s credit score metrics, which “have lagged our expectations.”
The transfer to CreditWatch unfavourable at S&P International got here in November 2022. ORBCOMM was taken off CreditWatch in December of that yr after what S&P stated was a “capital infusion” from GI Companions, “resolving a near-term money shortfall and sure bridging its path to constructive free working money move in 2023.”
Nevertheless, the outlook remained unfavourable. That unfavourable outlook was nonetheless in place when S&P International withdrew its scores within the wake of the brand new refinancing.
As of Wednesday morning, Moody’s (NYSE: MCO) had not made a change in its score of ORBCOMM. In March 2025, Moody’s assigned a company household debt score of Caa1 to ORBCOMM. On an equivalency foundation to S&P International’s scores, that’s one notch lower than the B- that S&P withdrew.
On the time, Moody’s stated of ORBCOMM that its debt/EBITDA ratio was an eye-popping 10X “as a result of firm’s restricted capability to transform sturdy order wins into income in addition to stress on EBITDA from greater prices.”
It additionally stated ORBCOMM’s income in 2024 was about $310 million.
However in its constructive feedback about ORBCOMM, Moody’s stated on the time that it benefited from “good market positions as a result of its choices are embedded in prospects’ processes and are complimented with aggressive pricing; constructive long run progress prospects as numerous distant and cellular property haven’t been penetrated with connectivity; good buyer diversification; and a non-public proprietor that has been supportive with liquidity injections.”
In a newer replace to its credit score evaluation in February, Moody’s stated of ORBCOMM that it’s “constrained by: (1) debt/EBITDA that has remained above 10x (together with holdco debt) as a result of firm’s restricted capability to transform sturdy order wins into service income whereas greater prices weigh on EBITDA.” It additionally stated income this yr seemingly dropped beneath $300 million.
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