Australian satellite operator NewSat has signed contracts with manufacturer Lockheed Martin Commercial Space Systems and Arianespace for the construction and launch of its debut Ka-band satellite Jabiru-1.
The company said that Jabiru-1 would be based…
Australian satellite operator NewSat has signed contracts with manufacturer Lockheed Martin Commercial Space Systems and Arianespace for the construction and launch of its debut Ka-band satellite Jabiru-1.
The company said that Jabiru-1 would be based on Lockheed’s A2100 series spacecraft, and that construction would start immediately. Arianespace is scheduled to launch the bird in second half of 2014.
SatelliteFinance understands that the insurance broker selected is Aon/ISB.
The financial terms on both contracts were not disclosed but Adrian Ballintine, NewSat CEO, stated that Lockheed and Arianespace are helping the company with its export credit applications with both the US Export-Import Bank and Coface respectively.
“In anticipation of the condition in the Lockheed Martin contract that financing be completed by the end of the fiscal year 2012, we lodged our applications earlier this year with export credit agencies US Ex-Im Bank and Coface. Lockheed Martin actively supported our application when lodged and will continue to work with us in our activities with the US Ex-Im Bank till conclusion,” Ballintine said.
He described a similar assistance from Arianespace regarding the Coface financing, with Société Générale being appointed as the lead Coface bank.
ArgoSat Advisors has been hired for advice on the satellite project, while Lazard acted as financial adviser.
During its AGM on 30 November, NewSat said that it hopes to secure export credit agency backing to fund up to 80% of Jabiru-1’s cost. The company added that it would expect ECA guaranteed loans to pay a margin of less than 4%.
The remainder of the satellite project’s cost is to be financed through equity.
To that end, in a statement on 20 December, NewSat announced a partially-underwritten rights issue and placement in order to raise up to A$36.5m (US$36.8m).
“The rights issue will be offered on the basis of one new share for every four shares held, at an application price of 60 cents per share, which if fully subscribed, would raise an amount of approximately A$26.5m [US$26.7m].”
The company added that E.L. & C. Baillieu has been appointed as lead manager and underwriter and that the rights issue is underwritten to A$10m (US$10.1m).
NewSat also said that A$10m has already been placed with sophisticated investors and financial institutions.
The Ka-band satellite is estimated to cost in the region of A$380m-A$440m, with net after tax profit over the bird’s 15-year life expected to be in excess of A$1bn to A$1.4bn.
Jabiru-1 is designed to have more than 7GHz of Ka-band capacity and under the contract with Lockheed, NewSat will have flexibility over the adjusting the usage of this capacity on the spot beams. The satellite will cover a number of countries including Afghanistan, Iraq, Pakistan, Saudi Arabia, Somalia and India.
So far, NewSat said it has signed contracts worth a combined US$346m for Jabiru-1. It targets US$575m more in opportunities for military and enterprise clients.
Ku-band Jabiru-2 may be launched shortly after Jabiru-1, and the company is already prospecting for Jabiru-3 and Jabiru-4. Jabiru-5 is also in the pipeline.
