KVH Industries Inc. sold its maritime training business, the Videotel group of companies, to an affiliate of Oakley Capital for a base purchase price of $90 million, on a cash-free, debt-free basis, subject to working capital adjustments.  The sale was completed immediately upon execution of definitive agreements.  KVH expects to receive payment of the purchase price within 30 business days, subject to subsequent adjustment for working capital.  Payment of the purchase price is secured by a charge (a type of foreign security interest) over the shares of Super Dragon Limited and Videotel Marine Asia Limited, and is further backed by an equity commitment letter from Oakley Capital IV Master SCSp, Oakley Capital’s fourth and newest fund that has recently raised in excess of €1 billion of capital commitments. 
 
KVH expects to use a portion of the net proceeds of the sale to repay the full balance of its outstanding term loans and a substantial portion of outstanding borrowings under its revolving credit facility. The definitive share purchase agreement contains various warranties regarding the Videotel business given by KVH Media Group Ltd., the direct seller of the Videotel companies, and KMG also agreed to provide the direct purchaser with a tax indemnity.

The Videotel group of companies includes Super Dragon Ltd., Videotel Marine International Ltd., Videotel Training Services Ltd., Videotel Consultants and Rentals Ltd., Videotel Marine Asia Ltd., and Videotel Pte Ltd. —KVH