Hughes Network Systems (HNS) has the option for $115 million in debt financing, in the form of an unsecured senior term loan facility. The initial lender is Bear Stearns Corporate Lending. HNS said it has until the end of the month to decide whether or not to enter into the loan agreement.
If it does sign the loan, HNS said it plans to use the money “to partially fund the purchase and/or construction of a satellite and/or for general corporate purposes.”
HNS’ HughesNet satellite broadband service, which has seen fitful progress over the last few years, has been picking up steam. The company reported that as of the end of 2006, it had signed up 325,000 small business and residential subscribers. HNS also provides broadband satellite service for large enterprises and government agencies.