SES raises €550m for O3b refinancing
November 23, 2016
By Chris Forrester
Satellite operator SES has issued a hybrid bond offering worth €550 million (€518.6m), which will be used to repay certain existing indebtedness of the group (including the remaining existing indebtedness of O3b) as well as for general corporate purposes.
The bond has a coupon yield value of 5.75 per cent, due for repayment in January 2024.
Padraig McCarthy, CFO at SES, commented: “The successful completion of SES’s second hybrid issuance in benchmark size is another important milestone and is an important element of SES’s financing strategy. The transaction was strongly supported by a wide range of high quality existing and new investors.
“A substantial part of the proceeds will be used to complete the refinancing of the entire O3b debt in 2016, allowing SES to increase the amount of financial synergies realised from 2017. These synergies will complement O3b’s continuing strong operational performance.”
J.P. Morgan acted as sole Global Co-ordinator and Structuring Agent & Joint Bookrunner. The other Joint Bookrunners were Deutsche Bank, Goldman Sachs International and HSBC. BBVA and Commerzbank also participated as Co-Lead Managers.