Viasat‘s liquidity got a strong boost this week the company placed $175 million in shares with affiliates of Intercorp, and affiliates of The Baupost Group, L.L.C. (“Baupost”), Viasat’s largest shareholder. Under the terms of the investment, the investors purchased an aggregate of 4,474,559 shares of common stock at a price of $39.11 per share, representing a premium of $1.00, or 2.6%, to Viasat’s closing share price on July 22, 2020, and a 5.1% premium to Viasat’s volume weighted average price over the 15 trading day period ending July 22, 2020. The deal bolsters Viasat’s cash balance while not assuming additional debt, an important longer term factor for the company’s success.
The need for more affordable, high-quality, fast internet connectivity virtually everywhere in the world has never been more apparent than in today’s environment. We are hard at work on contributing to the solution: sustaining progress on our next-generation ViaSat-3 global constellation and expanding our geographic and market presence.– Mark Dankberg, Viasat chairman and CEO
The company is clear that the additional funding was not necessary for ongoing operations nor to specifically address ViaSat-3 development and launch expenses, “Viasat has ample liquidity and a capital program sufficient to bring the ViaSat-3 global network into service.” This differs significantly from the restructuring earlier this week by Global Eagle or the May moves by Intelsat.
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