CARLSBAD, Calif. - Viasat Inc. (NASDAQ: VSAT), a company specializing in satellite communications with a market capitalization of $1.06 billion and annual revenue of $4.52 billion, has announced its decision to redeem all outstanding senior notes due in 2025 at their full principal amount. The redemption, which covers $442,550,000 in aggregate principal of the 5.625% notes, is scheduled for May 2, 2025, prior to their original September 15, 2025, maturity date. According to InvestingPro analysis, the company’s stock currently appears undervalued compared to its Fair Value.
The company plans to utilize its available cash to fund this redemption. While InvestingPro data shows Viasat operates with a significant debt burden of $7.5 billion, its current ratio of 1.8 indicates that liquid assets exceed short-term obligations, providing some financial flexibility. Following the redemption date, interest on these senior notes will no longer accrue, and the securities will be considered no longer outstanding. Registered holders of the 2025 Notes have been issued a notice of redemption by Wilmington Trust, National Association, the trustee for these notes.
This strategic financial move comes after Viasat’s acquisition of Inmarsat in May 2023, which marked a significant expansion for the company in the global communications sector. Viasat has since been working towards creating a robust communications network to deliver high-quality, secure, and affordable connections across various platforms, including terrestrial, aerial, and maritime domains. For detailed insights into Viasat’s financial health and growth prospects, investors can access comprehensive analysis and 11 additional ProTips through InvestingPro’s exclusive Research Report.
The redemption of these senior notes is in line with Viasat’s broader corporate strategy, aiming to streamline its capital structure and reduce future interest expenses. However, this press release does not constitute a formal notice of redemption.
Investors and stakeholders are advised that this information is based on a press release statement from Viasat, Inc. The company has a presence in 24 countries and continues to focus on connecting people and entities worldwide while advocating for a sustainable future in space communications.
In other recent news, ViaSat announced a significant partnership with Telesat to integrate Telesat Lightspeed Low Earth Orbit (LEO) Ka-band capacity into its multi-orbit network. This move is set to enhance connectivity services, particularly in the mobility and defense sectors, by providing improved broadband connections. Additionally, ViaSat has maintained its Wi-Fi deal with American Airlines, which will continue to offer complimentary Wi-Fi on aircraft using ViaSat’s technology. Despite challenges with its ViaSat-3 satellite constellation, this deal underscores ViaSat’s ongoing role in inflight connectivity. Deutsche Bank recently upgraded ViaSat’s stock rating from Hold to Buy, increasing the price target to $15.00, citing potential asset monetization and successful satellite launches as opportunities to improve financial standing. However, ViaSat faced a setback as major investors, including Ontario Teachers and CPP, filed intentions to sell a substantial number of shares, leading to concerns about changes in ownership structure. This filing has raised questions among investors about the potential impact on ViaSat’s market performance. The company has yet to comment on these planned share sales.
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