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Good news for Global Eagle: The company announced this morning that it has extended its liquidity by $61mm over the next 18 months. The additional funds come from a combination of restructuring its existing debt to reduce principal payments and though a $40mm expansion of the loan. The additional funds supplement the Company’s approximately $49 million of liquidity as of June 30, 2019, covering cash and unused revolver capacity. Global Eagle intends to use the funds to “to repay principal balance on its revolving credit facility and anticipates using the remaining proceeds for growth, cost initiatives and other general corporate purposes.”
We are pleased to announce this Amendment, which strengthens our liquidity and positions us to deliver significant long-term shareholder value as we continue our transition to sustainable, positive free cash flow generation. We are grateful for our strong collaborative partnership with our lenders. We see significant opportunities as we continue to serve our customers well and innovate in our markets.– Josh Marks, Chief Executive Officer of Global Eagle
While the increased liquidity is good news on the surface, it also calls attention to several challenges the company continues to face.