HUGH » Topics » B. Amended Revolving Credit Facility.

This excerpt taken from the HUGH 8-K filed Apr 17, 2006.

B. Amended Revolving Credit Facility.

In connection with the sale of the Notes, HNS amended certain covenants and pricing terms of its $50.0 million revolving credit facility pursuant to an amendment and restatement of the credit agreement governing this credit facility, dated as of April 13, 2006, among HNS, the lenders party thereto from time to time, Bear Stearns Corporate Lending, Inc., as administrative agent, Morgan Stanley Senior Funding, Inc., as syndication agent, and Bear, Stearns & Co. Inc. and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint book managers (the “Amended Revolving Credit Facility”). Under the Amended Revolving Credit Facility, the interest rates with respect to the revolving loans will be based on, at HNS’ option, the ABR rate plus 1.50% or LIBOR plus 2.50%. However, any overdue principal or other amounts owing

 

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under the Amended Revolving Credit Facility will bear interest at a higher rate. The Amended Revolving Credit Facility is guaranteed by HNS’ existing and future direct and indirect wholly-owned domestic subsidiaries (other than HNS’ license subsidiaries and receivables subsidiaries). The Amended Revolving Credit Facility is secured by a pledge of HNS’ stock and the stock of each of its wholly-owned U.S. subsidiaries and 65% of the capital stock of its first-tier, direct foreign subsidiaries. In addition, the collateral for the Amended Revolving Credit Facility includes substantially all of HNS’ other domestic tangible and intangible assets. The Amended Revolving Credit Facility contains certain customary representations and warranties and restrictive covenants.

A copy of the Amended Revolving Credit Facility, filed as Exhibit 10.2 hereto, is incorporated herein by reference. The description of the Amended Revolving Credit Facility contained herein is qualified in its entirety by the full text of such exhibit.

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