Satellite operator SES has raised a total of €400 million in a syndication of Schuldschein Loans. A Schuldschein loan is one that does not need to have a new prospectus issued, and can replace a private placement. They tend to cost less than a bond issue.
The SES borrowing comprises a €150 million 5.5-year floating tranche at Euribor 6 months plus 0.8 per cent and a €250 million 7-year fixed rate tranche with a coupon of 1.71 per cent. SES is rated Baa2/BBB- (both with stable outlook).
SES says the Schuldschein loan was upsized from the initially marketed size and was placed with several European and Asian institutions. The proceeds will support SES’s general corporate purposes and the refinancing of existing debt maturities which include a $500 million 144A bond with a coupon of 2.5 per cent and a final maturity date of March 25th 2019.
Andrew Browne, CFO at SES, commented: “We are pleased to have secured this financing at very attractive terms and expanding our investor base while extending our debt maturity profile, where we now have no further senior debt maturities to be financed until early 2020.”
BNP Paribas, ING Bank, Landesbank Baden-Württemberg and Landesbank Hessen-Thüringen acted as joint arrangers for the transaction.