Recapitalization provides Speedcast with clean balance sheet and financial strength and flexibility
WASHINGTON, D.C., March 11, 2021 – Speedcast has successfully completed its restructuring process and today emerged from chapter 11 proceedings under the ownership of Centerbridge Partners, L.P. and its affiliates. Following Centerbridge’s USD $500 million equity investment in the company, Speedcast now has a clean balance sheet with no secured debt and a healthy cash balance, optimally positioning it as a stable, long-term partner for its employees, customers and vendors.
“We are pleased to have reached the completion of this process which is the culmination of a lot of hard work from our entire team,” said Joe Spytek, Chief Executive Officer, Speedcast. “I especially want to thank our customers and partners who extended us their trust as we completed our restructuring, and our employees for their dedication to supporting client operations throughout this process. I’m eager to work with Centerbridge to position the business for success and give our customers the tools to advance the performance of their operations in today’s changing market landscape.”
Over the past 12 months, Speedcast has taken meaningful steps to reduce its cost structure and strengthen its operations. Now under new ownership, the company is moving forward on the course it set to transform its business and help customers evolve what their remote operations can achieve with fully connected systems that harness future-ready technologies and applications. Part of this effort includes integrating the company’s previous mobility networks to build a comprehensive, unified global platform capable of supporting the most demanding customer operations and digital transformation requirements.
“We look forward to supporting Speedcast’s management team in building upon the company’s strong foundation to realize the growth opportunities that exist as they move forward,” said Jared Hendricks, Senior Managing Director, Centerbridge. “We are excited to work together to help Speedcast further strengthen its service offerings to ensure the company is poised to thrive.”
Speedcast is advised by Weil, Gotshal & Manges LLP as global legal counsel and Herbert Smith Freehills as co-counsel. Michael Healy of FTI Consulting, Inc. is Speedcast’s Chief Restructuring Officer, and FTI Consulting, Inc. is Speedcast’s financial and operational advisor. Moelis Australia Advisory Pty Ltd and Moelis & Company LLC are Speedcast’s investment bankers. KCC is Speedcast’s claims and noticing agent. Centerbridge is advised by Wachtell, Lipton, Rosen & Katz.
Speedcast is a leading communications and IT services provider, delivering critical communications services to the Maritime, Energy, Mining, Media, Telecom, Cruise, NGO, Government, and Enterprise sectors. The company leverages its global network platform to provide fully connected systems that harness technologies and applications to transform what remote operations can achieve. With the world’s most comprehensive network, Speedcast enables faster, seamless pole-to-pole coverage from a global hybrid satellite, fiber, cellular, microwave, MPLS, and IP transport network with direct access to public cloud platforms. The company integrates differentiated technology offerings that provide smarter ways to communicate and distribute content, manage network and remote operations, protect and secure investments, and improve the crew and guest experience. With a passionate customer focus and a strong safety culture, Speedcast serves more than 3,200 customers in over 140 countries. Learn more at www.speedcast.com.
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About Centerbridge Partners, L.P.
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines—from private equity to credit and related strategies, and real estate—in an effort to find the most attractive opportunities for our investors and business partners. The Firm was founded in 2005 and as of January 31, 2021 has approximately $28 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies to help companies achieve their operating and financial objectives. For more information, please visit www.centerbridge.com.