UK-based satellite operator Avanti Communications has raised US$370m through a debut bond offering.
The company sold dollar-denominated senior secured 6-year notes with a coupon of 10% to institutional investors. Net proceeds will be used primarily to…
UK-based satellite operator Avanti Communications has raised US$370m through a debut bond offering.
The company sold dollar-denominated senior secured 6-year notes with a coupon of 10% to institutional investors. Net proceeds will be used primarily to refinance existing debt facilities.
David Williams, Avanti’s chief executive officer, said: “We are delighted to have entered the debt capital markets with our first bond issue which diversifies and increases the sources of funding available to the Company. The greater flexibility which the Notes provide will allow us to utilise our balance sheet more effectively and to respond to new opportunities. The notes have no financial ratio covenant tests and greatly enhance our cashflow.”
Jefferies and UBS acted as joint global co-ordinators for the financing, while Avanti was advised by Rothschild.
Avanti’s last trip to the capital markets was in early 2012 when it raised approximately £73.8m from a conditional share placement. Proceeds were used to help fund the company’s third satellite, Hylas-3, which will be a hosted payload on a new ESA satellite.
The last debt Avanti secured was the £194m in ECA-backed facilities that it received in December 2009 to help fund Hylas-2.
Avanti to buy Artemis
Avanti has signed a Memorandum of Understanding with the European Space Agency to buy the Artemis satellite for a nominal sum.
The satellite, which was launched in 2001 and is located at 21.5E, has a minimum of a further three years of useful life.
The satellite operator said that the spacecraft would give it ‘access to new opportunities.’
Artemis, or Advanced Relay and Technology Mission, had a difficult start to life. The much delayed project was finally launched in July 2001 but the Ariane 5 rocket launching it placed it into a low transfer orbit. It took 18 months and a series of unique recovery procedures, such as putting the satellite into an outward spiral trajectory, to position the satellite correctly.
Despite this damaging part of its onboard equipment, Artemis was able to successfully test its suite of advanced communication payloads and has officially completed its mission. ESA had originally planned to de-orbit the spacecraft in 2014.
Artemis’ payloads completed a number of satellite communications firsts including the first laser data link between satellites in different orbits, the first telecoms satellite to be extensively reprogrammed in orbit and the first to power its way to geostationary orbit with ion thrusters after surviving the longest-ever drift to its destination.
The satellite has also completed a number of two-way links with satellites, ESA’s Automated Transfer Vehicle (ATV) and EGNOS missions, airplanes and drones.
The Artemis contract with Avanti is subject to final approval by ESA.
