Eutelsat refinances debt

Eutelsat Communications announced the refinancing of Eutelsat Communications’ existing €1.765 billion credit facilities which were due in June 2013.

The refinancing will take place through:
– The issuance of 7-year senior unsecured bonds (the “Bonds”) for a total of €800 million by Eutelsat S.A.; and
– A new 5-year bullet senior unsecured term loan for €700 million and senior unsecured revolving credit facility granted to Eutelsat Communications in a maximum amount of €200 million, both maturing in December 2016

The order book for the Bonds reached more than €4 billion, demonstrating the market’s confidence in the long term business model of the Eutelsat Group. The Bonds will be issued at 99.186 percent and redeemed at 100 per cent of their principal amount and will have a coupon of 5.00 percent per annum. The Bonds will be cleared through Clearstream and Euroclear. Application has been made for the Bonds to be listed on the Official List and admitted to trading on the regulated market of the Luxembourg Stock Exchange. The Bonds will mature on the seventh anniversary of their issue. The delivery and settlement of the Bonds are expected to occur on 14 December 2011.

The Bond issue is accompanied by a new five-year bullet €700 million senior unsecured term loan and a €200 million senior revolving credit facility, also with a five-year maturity allowing Eutelsat Communications to refinance the existing outstanding term loan, as well as the existing revolving credit lines which are currently undrawn.

As a result of this refinancing, the Eutelsat Communications Group will extend the maturity of its financing from 3.8 years as at 30 June 2011, to 5.1 years today.

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