Fresh from securing a new private equity owner, Asian satellite operator ABS is pushing ahead with the delayed plans for its ABS-2 spacecraft, kick-starting a manufacturing contract with Space Systems/Loral for an early 2013 launch.
The operator…
Fresh from securing a new private equity owner, Asian satellite operator ABS is pushing ahead with the delayed plans for its ABS-2 spacecraft, kick-starting a manufacturing contract with Space Systems/Loral for an early 2013 launch.
The operator announced a preliminary agreement with SS/L in June 2009 to manufacture the bird, but these plans were put on the backburner until financing could be found.
On September 13, UK-based sponsor Permira announced it had acquired a majority stake in ABS through an all equity deal worth in the region of US$200m.
Permira acquired ABS holding company Kingsbridge from majority shareholder and part-founder Citi Venture Capital International (CVCI), as well as ADM Capital and other undisclosed shareholders. ABS’s management retained a minority stake in the company, with one banker previously telling SatelliteFinance that the book was specifically not sent to strategic players so that they could remain in charge.
A spokeswoman for ABS declined to comment on the acquisition because it is still ongoing, but confirmed to SatelliteFinance that ABS-2 will cost US$340m.
The spokeswoman added that around US$110m of this cost will be financed by ABS’s existing cash flow. Just over US$150m will be raised through a condosat agreement with Asian telecoms operators Korea Telecom and Singtel. This unique agreement involves ABS pre-selling the satellite’s transponders.
The remaining US$80m will be raised via an equity or debt financing, she said.
ABS-2 is vital to the operator’s future international growth, particularly because the group’s five in-orbit satellites are all more than 10 years old.
Touted by ABS as one of the most powerful commercial satellites to be launched in the Eastern Hemisphere, the spacecraft will have more than 12 kW of payload power, and up to 87 C-band, Ku-band and Ka-band transponders.
It will be placed at 75E, where ABS-1, ABS-1A, and ABS- 1B are currently located, covering the Middle East, Africa, Asia Pacific and CIS/Russia. The ABS-2 agreement is SS/L’s sixth satellite contract of the year.
