SatelliteFinance understands that Eutelsat is planning a sizeable debt financing in order to replace a portion of its existing debt.
The company has mandated Crédit Agricole CIB, Société Générale and Bank of Tokyo-Mitsubishi UFJ as global…
SatelliteFinance understands that Eutelsat is planning a sizeable debt financing in order to replace a portion of its existing debt.
The company has mandated Crédit Agricole CIB, Société Générale and Bank of Tokyo-Mitsubishi UFJ as global co-ordinators for the transaction.
A Eutelsat spokesperson would not comment on the financing but did confirm that the satellite operator will be “meeting investors to get the Group prepared to refinance part of its existing indebtedness when appropriate market conditions prevail.”
According to a SatelliteFinance source, the financing is likely to be in two pieces, a bank loan and a bond offering.
While there is no time pressure to get the deal done, particularly given the current volatility of the capital markets, the source suggested that the financing could take place before the end of the year. They added that as with Eutelsat’s inaugural bond offering in March 2010, the company is likely to be opportunistic in its timing.
As and when it does take place, the new debt is likely to replace the E1.5bn of senior unsecured bank facilities that mature in June 2013. The satellite operator also has a E300m revolver that expires on that date but it is currently undrawn.
In an October 2011 research note, ratings agency Moody’s stated that it expected Eutelsat would seek to simplify its existing corporate structure in its next refinancing, replacing the E1.5bn loans that were taken out by Eutelsat Communications with new debt at the operating company Eutelsat SA level.
Eutelsat, which had a leverage of 2.6 times debt to full year June 2011 EBITDA, is rated Baa2 by Moody’s and BBB by Standard & Poor’s.
Meanwhile, Eutelsat has announces that from 1 March 2012 it will be unifying the names of its satellites around the established Eutelsat brand. From this date, the group’s satellites will take the Eutelsat name associated with the relevant figure for their orbital position and a letter indicating their order of arrival at that position. For example W6, which is located at 21.5E, will become EUTELSAT 21A.
