SES has issued a €625 million hybrid bond priced at a coupon of 2.875 per cent with a reset date of August 27th 2026.
SES says the instrument’s credit ratings are expected to be Ba1/BB with Moody’s and Standard & Poor’s respectively.
“Proceeds of the issuance will be used for general corporate purposes which includes the possible refinancing of existing hybrid capital instruments,” states SES.
Concurrently, SES has also announced a capped tender offer for its outstanding hybrid €750 million 4.625 per cent Perp NC2022 at a fixed purchase yield at -0.10 per cent.
“With this transaction SES has taken advantage of the current attractive market conditions to proactively refinance its hybrid tranche callable in January 2022 well in advance of the first call date,” adds SES.
J.P. Morgan and MUFG Securities acted as Global Coordinators & Structuring Agents, together with BNP Paribas, Goldman Sachs International, HSBC, Mizuho Securities as Joint Bookrunners and Intesa Sanpaolo as Co-Lead. The settlement is scheduled for May 27th and application has been made for the notes to be listed on the Luxembourg Stock Exchange. The securities were placed with a broad range of institutional investors across Europe.
Sandeep Jalan, CFO at SES, commented: “We are pleased to have secured this new hybrid offering which allows us to proactively refinance the nearest hybrid call at significantly more favourable terms.”