UK-based satellite operator Avanti Communications is considering returning to the US bond markets to fund a new satellite.
The company netted US$370m through a debut bond offering in October 2013, and is now weighing up whether it might be able to…
UK-based satellite operator Avanti Communications is considering returning to the US bond markets to fund a new satellite.
The company netted US$370m through a debut bond offering in October 2013, and is now weighing up whether it might be able to finance a fourth satellite through a modification of the existing bond indenture and a further issue of secured notes.
Avanti’s plan is influenced by the strong performance of its unlisted 10% senior secured six-year notes in the secondary market over the last six months.
Proceeds from those notes were used primarily to refinance existing debt facilities.
The company has historically tapped the debt and equity markets to help finance its satellites.
In early 2012, Avanti raised £73.8m from a conditional share placement to fund Hylas-3, a hosted payload on a new European Space Agency satellite that is due to be launched next year. While Hylas-2 was financed through £194m of ECA-backed debt facilities that it received in December 2009.
Avanti, which has previously used Rothschild to advise it on financings, said it expects to update the market within two weeks on whether it will go ahead with the plan.
The company would not comment further on the proposed US bond offering.
Nets first Artemis contract
Avanti has also announced that it has made the first sale of services from the Artemis satellite.
The company described the contract as a multi-year, multi-million pound deal with a large corporate customer in a new market. It would not disclose any further details.
Avanti acquired the Artemis satellite from ESA on 1 January 2014. The experimental spacecraft, which contains Ka-band, S-band, L-band and optical payloads, was launched in 2001 and has a minimum of a further three years of useful life.
Avanti previously said that Artemis gives it the opportunity to offer a range of new Ka-band services, such as very high speed data transfer at up to 450 Mbps, to commercial and institutional customers. It also plans to commercially develop the S and L-band payloads and navigation payload.
Artemis is located at 21.5E with coverage of Europe, Africa and the Middle East.
