Eutelsat has priced €930m (US$1.276bn) of senior unsecured notes due January 2020.
The notes carry a coupon of 2.625% and priced at 99.289 to yield 2.753%. The debt was rated Baa3 by Moody’s and BBB by Standard & Poor’s.
Eutelsat stated that it has…
Eutelsat has priced €930m (US$1.276bn) of senior unsecured notes due January 2020.
The notes carry a coupon of 2.625% and priced at 99.289 to yield 2.753%. The debt was rated Baa3 by Moody’s and BBB by Standard & Poor’s.
Eutelsat stated that it has been able to ‘take advantage of the very competitive current market environment to raise long-term financing with a 6-year maturity at attractive conditions. The transaction was well received by a diversified investor base and was significantly over-subscribed.’
Banca IMI, Credit Agricole, Mitsubishi UFJ and Societe Generale were lead joint-bookrunners on the financing, while Mizuho and SMBC Nikko Capital Markets were co-lead managers.
Proceeds from the offering will be used to fund Eutelsat’s US$1.142bn acquisition of Mexican satellite operator Satmex, which is expected to be completed by the end of 2013, beginning 2014.
To initially support that deal, Eutelsat secured a two-year US$850m bridge term loan, which will now be cancelled.
Delivery and settlement of the new bonds is expected on or about 13 December 2013.
Eutelsat last tapped the bond market back in October 2012 when it sold €300m of 10-year 3.125% senior unsecured notes. The company also has €850m of 4.145% senior unsecured notes due March 2017 and €800m of 5% senior unsecured notes due January 2019.
