Get to know us. Our independent credit research, global market insights, covenant analysis and news help the world’s financial decision makers manage risk better.
Viasat/Ligado: Don't Count Any Chickens Yet
Davis Hebert, CFA - Head of Telecom/Media, CreditSights
Savannah Buzzeo - Analyst, Telecom/Media, CreditSights
EXECUTIVE SUMMARY
-
We (and the market) had written off Ligado as a nothing-burger. Ligado has a 99-year lease of Inmarsat’s North America L-Band spectrum but, despite paying Inmarsat $1.7 billion to date, still has no business to speak of. We (and the market) had largely written off any material future payments from the now-bankrupt spectrum holding company. Inmarsat is currently owed $507 million by Ligado with the next payment due on Jan. 13. While a new business plan using spectrum leased from Inmarsat suggests a potentially positive outcome, Ligado is suing Viasat/Inmarsat for breach of contract and is seeking repayment of what it had already paid, as well as additional monetary damages (perhaps as a ploy to reduce the obligation). We also believe the bankruptcy could take quite some time to play out (with Inmarsat not being compensated during that time).
-
AST deal (and Trump election?) offers a new chance for Ligado. Considering the market had ascribed zero value to any future compensation from Ligado, Inmarsat bonds bounced higher after Ligado filed a prepackaged Ch. 11 bankruptcy, with emergence contingent on new investment from AST SpaceMobile, a D2D satellite provider with ties to AT&T and Verizon. That investment is contingent on regulatory approval of the plan, which has a better chance with satellites versus high-powered terrestrial use (GPS interference concerns), not to mention under a Trump administration that had previously cleared Ligado to launch a 5G network.
Would you like access to the full report?
Receive a complimentary copy of Viasat/Ligado: Don't Count Any Chickens Yet
Award-Winning, Completely Unbiased Research
On the investment grade and high yield securities of issuers around the globe.
Select an article to download a free piece of research.
Filter
US HY Picks: September 2026
US HY Picks: September 2026
Anthropic: Our Thoughts Pre S-1 Filing
Anthropic: Our Thoughts Pre S-1 Filing
US Insight: BSL Takeouts of Direct Loans: By the Numbers
US Insight: BSL Takeouts of Direct Loans: By the Numbers
Asia Credit Best Ideas: September 2026
Asia Credit Best Ideas: September 2026
Hyperscalers: Leases, Commitments & Backstops
Hyperscalers: Leases, Commitments & Backstops
Our Products
CreditSights combines credit market research, covenant analysis and leveraged finance news into one site to help you Know More. Risk Better.
Covenant Review
The Undisputed Authority on Bond & Loan Covenants.
Bixby
Market-moving news and premier financial data on the private broadly syndicated loan market.
Risk Products
Monitor, manage and mitigate risk effectively within your portfolio with our range of risk solution tools.
Private Credit
Our solution offers clients a detailed understanding of loan terms, risks, and financial nuances.