Thread regarding ViaSat Inc. layoffs

$15 again

How long until single digits?

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| 3731 views | | 44 replies (last October 30)
Post ID: @OP+1ueshopg

44 replies (most recent on top)

Tik tok. I reckon we have 1 week before earnings is announced and we plummet to $7 / share.

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Post ID: @11khp+1ueshopg

And we are still roughly “ 1.5 x GOGO “

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Post ID: @Onsb+1ueshopg

Looks like the usual pre-earnings rally. Might go to $13-14 in a couple weeks, then crash down to $7 after earnings.

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Post ID: @Ouix+1ueshopg

Hey come on folks. Why all the negativity?
Stock is clearly in double digits @10.64.
Our market cap is an amazing 1.36B so we are now “ 1.5 GOGOs “
Time to celebrate

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Post ID: @Mryq+1ueshopg

I'm so glad I pulled my money out of this loser. I'm up big in AAPL, NVDA, AVGO, and META. It's been a good year!

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Post ID: @Lksx+1ueshopg

It’s going to be interesting to see how low it goes when they announce the next launch.

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Post ID: @Iuli+1ueshopg

$10.67….

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Post ID: @Hryd+1ueshopg

10 layoffs yesterday? So if you’re still working today that means you’re safe until next year.

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Post ID: @Hyzp+1ueshopg

I read on this site that 10 folks in Global Ops got told they get cut just yesterday. It’s real.

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Post ID: @Htxi+1ueshopg

A new low every day. Obviously we’ll see single digits this month.

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Post ID: @Hejd+1ueshopg

The lower the stock goes the more RIFs there will be

Single digits by end of month?

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Post ID: @glyd+1ueshopg
Who’s gonna buy those bonds now?

Some billionaire who wants to be come a millionaire!

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Post ID: @gyfv+1ueshopg

Who’s gonna buy those bonds now?

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Post ID: @gfxl+1ueshopg

That loan is more than the market cap. The new CFO is apparently a good talker.

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Post ID: @fksx+1ueshopg

It's just $178M a year in interest. They can shed a few more jobs to cover it.

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Post ID: @ffka+1ueshopg

To be clear, Viasat replaced 6.75% debt due in 2026 with 9% debt due in 2029. This when we're heading into a period of reducing interest rates which pose better timing opportunities. Cue Gooroo's misplaced "this was a great debt sale" garbage at the next all hands. #winning

https://news.viasat.com/newsroom/press-releases/viasat-announces-upsizing-and-pricing-of-1-975-million-of-senior-secured-notes

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Post ID: @fxbg+1ueshopg

Inmarsat debt would have been secured against Inmarsat assets, i.e. one or more of the satellites. This security would remain even as Viasat now owns Inmarsat as opposed to a group of PE investors.

In the event of default, if the Inmarsat assets used to secure the debt are not sufficient, then technically Viasat is not on the hook to make up the difference. However, if Viasat did that they'll find raising debt in future a much harder and more expensive task.

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Post ID: @ewsf+1ueshopg

Waa waa waa. VSAT stock su-ks!

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Post ID: @ehis+1ueshopg

I think this

"Viasat does not guarantee Inmarsat's debt."

just means the Inmarsat debt holders are way down the list if the company folds and assets are divided out to the debt holders. They get nothing.

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Post ID: @eqyb+1ueshopg

my $10k stock grant is worth $2k and from what I understand you cannot write off the lossed from RSUSs against other stock gains.

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Post ID: @ectz+1ueshopg

This is the part in the Fitch synopsis that I found interesting. Curious from someone more finance savvy what this means in corporate practice. Could Viasat decide to walk away from Inmarsat (in whatever form that may take) and not be on the hook for the debt?

"Viasat does not guarantee Inmarsat's debt. Fitch expects Viasat will maintain, at least for the time being, two separate debt silos: Viasat credit group and Inmarsat credit group. There are no cross guarantees between the two debt silos."

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Post ID: @eicn+1ueshopg

Lots of info from Fitch.

https://www.fitchratings.com/research/corporate-finance/fitch-rates-viasat-proposed-debt-offering-bb-09-09-2024

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Post ID: @ekaf+1ueshopg

https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3246624

The $1.25 Billion secure notes gets a rating of B+ (Non-investment grade speculative) with an expect recovery of 65% in case of default. I wonder what interest rate they have to offer to tempt investors.

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Post ID: @dpoz+1ueshopg

All we are is a debt addict with little to show for it. That always ends well.

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Post ID: @cvde+1ueshopg

I bet this isn't the capital structure they thought they would have when they decided to swallow Inmarsat. Satcom doesn't have valuations like AI. It's more like a utility company. The Verizon of GEO satcom.

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Post ID: @cpix+1ueshopg

The $1.25B is to pay off debt due in 2026 at 6.75% ($84M per year in interest). I wonder what interest rate they can get.

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Post ID: @czem+1ueshopg

Wow! They're trying to float $1.25B in bonds due in 2029. No thanks!

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Post ID: @ckln+1ueshopg

New CFO could signal something drastic is about to take place for something the old CFO had no experience with. It’s possible they are preparing to sell the company.

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Post ID: @clpc+1ueshopg

Stock market up big today, viasat down big

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Post ID: @czoz+1ueshopg

Someone tried to do that a few years ago and got shown the door.

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Post ID: @cido+1ueshopg

Gov/DoD is literally keeping us on life support the past few years while the rest of the company is still going through an existential crisis. We'd be more profitable if those two segments were finally split once and for all tbh.

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Post ID: @cqih+1ueshopg

DoD biz is very low risk for the guberment, plenty of buyers for that should we go under

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Post ID: @bpyl+1ueshopg

@8uix+1ueshopg

I mean DOD has quite of a lot of contracts with Viasat …. unless those contracts get can by the DOD or Viasat sells thems…. Then Viasat will still be an around ….. but for how much longer…

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Post ID: @9frx+1ueshopg

Realistically Viasat - the hardware, the assets - will always be worth something so the government will have little concern about the service not being delivered.

If the current owners continue to own the company/assets is a different question. Good chance the debt holders will become the owners, debt is converted into equity which would save a large amount of $$ in interest payments.

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Post ID: @9ehl+1ueshopg

It’s a one year deal with 4 option years. If viasat goes out of business then they don’t need to take the option years

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Post ID: @8gla+1ueshopg

Wow it's up! Blue force tracking. Good news that the government still thinks it will be around long enough to do the job.

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Post ID: @8uix+1ueshopg

In the 14s

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Post ID: @7fog+1ueshopg

$14 today

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Post ID: @2cfb+1ueshopg

They need a better cook.

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Post ID: @lao+1ueshopg
Not sure why the old CFO wasn’t sacked?

This is what a sacking at this level looks like.

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Post ID: @jwq+1ueshopg

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