ORBCOMM Completes $45 Million Term Loan Financing with AIG for Growth Capital

  ORBCOMM Completes $45 Million Term Loan Financing with AIG for Growth

Business Wire

FORT LEE, N.J. -- January 7, 2013

ORBCOMM Inc. (Nasdaq: ORBC), a global satellite data communications company
specializing in two-way Machine-to-Machine (M2M) communications, today
announced that it completed a debt financing in the form of a five-year term
loan through a Senior Secured Note Agreement in the principal amount of $45
million with AIG Asset Management (U.S.), LLC. The five-year term loan has no
required principal amortization and a fixed interest rate of 9.5%, payable
quarterly, for the life of the loan. Subject to the terms set forth in the
Note Agreement, the company may prepay the Notes, in whole or in part, at any
time prior to the maturity date.

The company intends to use the proceeds of the AIG financing to facilitate
growth opportunities such as new services, product offerings, geographic
distribution and potential acquisitions into key vertical markets. The
proceeds will also provide a capital expenditure cushion.

"We are pleased to have additional financing available to pursue strategic
growth opportunities while at the same time preparing for the launch of our
next generation OG2 satellites,” said Marc Eisenberg, Chief Executive Officer.
“We plan to use the proceeds of this transaction toward OG2-related growth
opportunities, including enhanced products and services. In addition, we will
look at further acquisitions within key vertical markets and geographies that
will take advantage of the advanced capabilities of our OG2 satellites.”

ORBCOMM anticipates launching the OG2 satellites as the primary mission on two
planned Falcon 9 launches, the first in mid-2013 and the second in 2014. The
OG2 constellation is specifically designed for ORBCOMM’s customers in key
vertical markets such as heavy equipment, transportation, maritime,
agriculture, oil & gas, energy & utilities, and government. ORBCOMM’s
customers will benefit from the faster communications speeds, improved
coverage, increases in allowable message sizes, better power management, and
other features that will increase the markets they can serve, while continuing
to support the efficient, reliable mission-critical communications available

The company will use some of the proceeds to repay existing debt of $3.5
million incurred with the StarTrak acquisition. As part of the Agreement, the
company will terminate the existing $20 million credit facility with its
satellite vendor Sierra Nevada Corporation that was available under the OG2
satellite development program, and can obtain additional financing through a
revolving working capital facility with other lenders for up to $15 million in
the form of inventory and accounts receivable borrowing based loans.

Sagent Advisors, LLC advised ORBCOMM on the financing. Milbank, Tweed, Hadley
& McCloy LLP acted as legal advisor to ORBCOMM.

About ORBCOMM Inc.

ORBCOMM is a leading global satellite data communications company,
specializing in Machine-to-Machine (M2M) communications. Its customers include
Caterpillar Inc., Doosan Infracore America, Hitachi Construction Machinery,
and Hyundai Heavy Industries, Asset Intelligence (a subsidiary of I.D.
Systems, Inc.), Komatsu Ltd., Manitowoc Crane Companies, Inc., and Volvo
Construction Equipment among other industry leaders. By means of a global
network of low-earth orbit (LEO) satellites and accompanying ground
infrastructure, ORBCOMM’s low-cost and reliable two-way data communication
services track, monitor and control mobile and fixed assets in our core
markets: commercial transportation; heavy equipment; industrial fixed assets;
marine and homeland security. ORBCOMM based products are installed on trucks,
containers, marine vessels, locomotives, backhoes, pipelines, oil wells,
utility meters, storage tanks and other assets. ORBCOMM is an innovator and
leading provider of solution services for the refrigerated and transportation
markets. Under its ReeferTrak,^® GenTrak,^TM and CargoWatch ^ TM brands, the
Company provides customers with the ability to proactively monitor, manage and
remotely control their refrigerated and transportation assets. Additionally,
ORBCOMM provides Automatic Identification System (AIS) data services for
vessel tracking and to improve maritime safety to government and commercial
customers worldwide. ORBCOMM is headquartered in Fort Lee, New Jersey and has
its network control center in Dulles, Virginia. For more information, visit

Forward-Looking Statements

Certain statements discussed in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements generally relate to ORBCOMM’s plans,
objectives and expectations for future events and include statements about
ORBCOMM’s expectations, beliefs, plans, objectives, intentions, assumptions
and other statements that are not historical facts. Such forward-looking
statements, including those concerning the ORBCOMM’s expectations, are subject
to known and unknown risks and uncertainties, which could cause actual results
to differ materially from the results, projected, expected or implied by the
forward-looking statements, some of which are beyond ORBCOMM’s control, that
may cause ORBCOMM’s actual results, performance or achievements, or industry
results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. In
addition, specific consideration should be given to various factors described
in Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” and
elsewhere in ORBCOMM’s Annual Report on Form 10-K for the year ended December
31, 2011, and other documents, on file with the Securities and Exchange
Commission. ORBCOMM undertakes no obligation to publicly revise any
forward-looking statements or cautionary factors, except as required by law.


Robert Costantini, 703-433-6305
Chief Financial Officer
The Abernathy MacGregor Group
Jennifer Stroud, 212-371-5999
Vice President
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