Company: VSAT
Filing Date: 2025-02-11
Form Type: CORRESP
Source: 0001193125-25-024360
Chunk: 1

Company: VIASAT INC
Filing Date: 2025-02-11
Form: CORRESP
Chunk 1
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collectively, the “Viasat Debt Agreements”) contain covenants that limit the ability of Viasat to pay dividends to its stockholders. The secured credit facilities and the indenture governing the senior secured notes (collectively, the “Inmarsat Debt Agreements”) of Connect Finco SARL and Connect U.S. Finco LLC, which are indirect wholly-owned subsidiaries of Viasat (collectively, with Connect Bidco Ltd. and its subsidiaries, “Inmarsat”), do not limit the ability of Viasat to pay dividends to its stockholders. Under Viasat’s term loan and revolving credit facilities, Viasat is permitted to pay dividends to its stockholders in an unlimited amount so long as specified senior secured net leverage ratios, total net leverage ratios and liquidity requirements are met and no event of default has occurred and is continuing, in addition to making dividends pursuant to other restricted payment baskets based on cumulative consolidated net income and LTM adjusted EBITDA. Under the indentures governing Viasat’s senior notes and senior secured notes, so long as no default or event of default is continuing (as applicable), Viasat is similarly permitted to pay dividends to its stockholders pursuant to various restricted payment baskets calculated based on cumulative consolidated net income and total assets or LTM adjusted EBITDA. These baskets collectively permitted Viasat to pay dividends to stockholders in excess of its total retained earnings as of March 31, 2024. Accordingly, we determined that the restrictions in the Viasat Debt Agreements on the ability of Viasat to pay dividends to its stockholders were not significant, and that the notes to the financial statements required by Rule 4-08(e)(1)were therefore not applicable. Rule 4-08(e)(3)of Regulation S-X We have also reviewed the applicability and requirements of Rule 4-08(e)(3) with respect to restrictions on the ability of our subsidiaries to transfer funds to Viasat in the form of cash dividends, loans or advances. The Viasat Debt Agreements do not limit the ability of our subsidiaries to transfer funds to Viasat in the form of loans, advances or cash dividends, as each contains covenants that permit unlimited payments and distributions to be made from subsidiaries to Viasat. Moreover, certain of the Viasat Debt Agreements prohibit Viasat from entering into arrangements that would prohibit Viasat’s subsidiaries from paying dividends or making loans to Viasat (subject to