Eutelsat completes refinancing plan
March 6, 2026
Eutelsat has announced the closing of its €1.5 billion senior notes offering on March 5th.
The satellite group said that the transaction “represents the final milestone in [its] comprehensive c. €5 billion equity and debt financing strategy, supported by its main shareholders. It aims to support the Group’s long-term strategic vision through the deployment of its Low Earth Orbit (LEO) satellite activities while strengthening its financial flexibility by accelerating its debt reduction”.
In late 2025, Eutelsat completed a €1.5 billion two-part equity raise through:
Reserved Capital Increases for a gross amount of €828 million at a price per share of €4, subscribed by the French Republic via the Agence des Participations de l’Etat Bharti Space, His Majesty’s Government, via The Secretary of State for Science, Innovation and Technology of the United Kingdom CMA CGM Participations and the Fonds Stratégique de Participations.
A Rights Issue of approximately €670 million, in which the above-mentioned shareholders exercised their rights.
The successful execution of this capital raise led to rating upgrades from Moody’s and Fitch to Ba3 (+2 notches) and BB (+3 notches) respectively enhancing Eutelsat’s ability to tap Debt Capital Markets and raise Export Credit Financing to complete the financing needs of its medium-term plan.
In parallel with the capital increases, Eutelsat designed a global debt financing plan including bond financing, export credit financings and an extension of bank debt maturities aimed at enabling the Group to finance its medium-term plan and cover investments of approximately €4 billion over the period 2026-2029.
A key objective of the debt financing plan was to simplify the Group’s capital structure by (i) removing structural subordination as most of the existing debt of the Group previously sat at the level of Eutelsat SA subsidiary, and (ii) waiving cash circulation constraints from existing debt agreements.
This plan was conducted in four parts:
- November 2025: €900 million Senior Facilities Agreement comprising a €400 million term loan and a €500 million revolving credit facility, to refinance the €450 million RCF raised in 2024 at Eutelsat SA level with a maturity date in April 2027, the €100m RCF sitting at Eutelsat Communications level with a maturity date in July 2027 and the €400 million Term Loan sitting at Eutelsat Communications level with a maturity date in June 2027.
- February 2026: Signing of c.€1 billion in Export Credit Agency (ECA) financing, backing the procurement of 440 LEO satellites from Airbus Defence and Space. These satellites will ensure full operational continuity for customers of the OneWeb LEO constellation, by progressively replacing existing satellites as their operational life comes to an end.
- February 2026: Amendment and Restatement Agreement with the European Investment Bank (EIB) in connection with the change of borrower (from Eutelsat SA to Eutelsat Communications SA) of the €200 million term loan dated December 2028.
- February 2026: Eutelsat Communications priced a €1.5 billion dual-tranche senior unsecured note comprised of a € 850 million 5-year tranche and a €650 million 7-year tranche with coupons of 5.75 per cent and 6.25 per cent respectively. The proceeds will redeem in full two sets of notes issued by Eutelsat SA: the €600 million 2.25 per cent notes due 2027, and the €600 million 9.75 per cent notes due 2029.
The closing of this bond issuance was the last condition precedent to the effectiveness of the SFA, ECA and EIB debt transactions, concluding a multi-stage capital structure reorganisation initiated in 2025. These four unsecured debt instruments will sit at Eutelsat Communications SA level and will rank pari-passu, benefitting from upstream guarantees from Eutelsat SA and OneWeb Holdings.
Sebastien Rouge, Chief Financial Officer at Eutelsat, commented: “Eutelsat has reached a major milestone with the completion of its comprehensive financing plan, marking a decisive turning point in the Group’s transformation. With this strengthened financial foundation, Eutelsat is well positioned to accelerate the deployment of its multi-orbit strategy, support the future European IRIS² constellation, and reinforce its position as Europe’s leading provider of space connectivity.”
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