Paris-based satellite operator Eutelsat has announced the launch of a new debt offering with a total nominal amount of €1.5 billion in new senior bonds denominated in euros.

The amount raised will be mainly used to repay existing expensive debt. Eutelsat is tapping the market at much more favourable terms now that its credit and debt ratings have improved significantly and helped by the recent half-yearly results which the market received well. Additionally, the space market generally is looking much more optimistically at operators such as Eutelsat.

The capital raise consists of two euro-denominated senior note tranches. The first is a five-year bond maturing in 2031, and the second a seven-year bond maturing in 2033. Initial yield guidance was set at around 6.375 per cent for the shorter-dated notes and 6.875 per cent for the longer-dated offering. Both sets of borrowings carry guarantees from Eutelsat S.A. and OneWeb Holdings Limited.

The gross proceeds from the offering will be used to fully repay Eutelsat’s €600 million 2.25 per cent bonds maturing in 2027. In addition, the company will use the funds to fully repay Eutelsat’s €600 million 9.75 per cent bonds maturing in 2029.

Finally, the proceeds will also be used to fully repay and terminate the term loan and revolving credit facility made available to the company under the credit agreement dated June 25th 2021, to pay fees and expenses related to this offering and the conclusion of the new credit agreement, as well as accrued interest on the debt repaid as part of these transactions, and to increase cash reserves.

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Categories: Articles, Broadband, Business, Funding, Satellite

Tags: eutelsat, OneWeb