Nascent satellite telecommunications infrastructure provider O3b Networks is finally expected to complete its debt and equity financing by the end of September. HSBC is advising the company on the debt side while UBS is believed to have advised it on the…
Nascent satellite telecommunications infrastructure provider O3b Networks is finally expected to complete its debt and equity financing by the end of September. HSBC is advising the company on the debt side while UBS is believed to have advised it on the equity portion.
SatelliteFinance understands that the funding is split between a US$525m Coface-backed debt facility, a US$150m commercial mezzanine tranche and US$500m in equity financing, of which approximately US$236m is new equity investment.
Coface is guaranteeing US$465m of the debt facility, which is predominantly being supplied by French banks although a number of international banks are believed to have taken tickets. The mezzanine debt has predominantly been taken up by institutional investors.
The additional equity is being provided by a mix of new and existing shareholders. On completion, SES expects to retain the largest shareholding in the company, although still a minority stake at around 30%.
Once the financing is complete, Thales Alenia Space will begin construction on the 20 medium earth orbit Ka-band satellite constellation. The process is believed to have been delayed by around three months due to the complexities over securing the financing. The planned launch of the first 8 satellites via an Arianespace Soyuz rocket is now scheduled for early 2013, with the remaining birds being launched in incremental batches until 2015.
O3b currently lacks an operational headquarters but once the financing is completed a new home is expected to be announced with the Benelux region understood to be the most likely destination.
