Paris-based satellite fleet operator Eutelsat has refinanced €800m (US$862m) in debt due 2016 to extend its maturity profile.
The group replaced a €800m term loan with a new €600m (US$646m) senior unsecured loan that expires in March 2020, with…
Paris-based satellite fleet operator Eutelsat has refinanced €800m (US$862m) in debt due 2016 to extend its maturity profile.
The group replaced a €800m term loan with a new €600m (US$646m) senior unsecured loan that expires in March 2020, with the option of two one-year extensions. Further details on the new facility were not disclosed.
Eutelsat paid off the rest of the old loan with cash reserves, which stood at €469m (US$505m) at the end of 2014.
“These operations enable Eutelsat to extend its debt maturity profile and will reduce financial charges by circa €15m before tax on an annualised basis,” the company said. A Eutelsat spokesperson added that the refinancing will not change its leverage, which is calculated on net debt not gross debt.
As part of the transaction, the operator renegotiated a €200m (US$215m) revolving credit facility that was also set to expire in 2016. It secured a new agreement for the same amount but due in five years. As with the term loan there is also the possibility of two 365-day extensions.
The Bank of Tokyo-Mitsubishi UFJ, Crédit Agricole (facility agent), HSBC, Intesa Sanpaolo and Société Générale acted as mandated lead arrangers and bookrunners.
Mizuho, Landesbank Hessen-Thüringen Girozentrale and Sumitomo Mitsui Banking Corporation acted as mandated lead arrangers.
Eutelsat’s next debt due to mature is Eutelsat SA’s €850m 4.125% bonds which are due in March 2017.
