Australian satellite operator NewSat has acquired the rights to an additional orbital slot and expanded frequencies from Cyprus-based satellite company AP Kypros Satellites.
The agreement means that NewSat now has access to eight orbital slots in…
Australian satellite operator NewSat has acquired the rights to an additional orbital slot and expanded frequencies from Cyprus-based satellite company AP Kypros Satellites.
The agreement means that NewSat now has access to eight orbital slots in perpetuity, while the expanded frequencies open the possibility for it to order larger, more flexible satellites.
Under the initial deal signed by the two parties in February 2011, NewSat secured exclusive use of one slot, 50% of the frequencies of another two spaces and options over four others. The level of exclusivity of the eighth slot was not revealed.
Financial details of the agreement were also not disclosed but the consideration will take the form of both cash and shares. These are to be paid in two instalments, the first of which is being made on execution of the agreement and the second when the required regulatory approvals are received.
This structure is similar to the original deal between the two companies which saw NewSat pay in five cash instalments and a sixth in the form of ordinary shares on 1 December 2011.
Adrian Ballintine, NewSat Founder and CEO, said: “With this new agreement, we have strengthened and expanded NewSat’s presence in the industry and solidified our future position as a global satellite operator. The expanded frequency allocations enable construction of more and larger satellites in existing slots and the new slot is located in arguably the best position to service the Middle East. This means more satellite capacity available for sale over the world’s highest demand regions and equates to additional revenues in excess of A$250m per annum in perpetuity once satellites are launched.”
NewSat currently has one satellite under construction, Jabiru-1, which is being built by Lockheed Martin and is due to be launched by Arianespace in the second half of 2014. To fund the spacecraft, NewSat in the process of securing backing from both the US and French export credit agencies.
Commenting on the satellite’s progress, Ballintine said: “While the expanded frequencies and orbital slot are all about our future growth, we are in parallel continuing to focus on finalizing Jabiru-1. With recent customer announcements, A$526m in sales pre-commitments and the A$20m equity raise, NewSat is in a strong position from a financing point of view. The export credit agency debt financing for the Jabiru-1 project continues to progress exactly according to plan with final financial close expected in the first half of this year.”
Last month, NewSat signed an agreement with Malaysian satellite operator Measat whereby the former secured multiple Ku-band transponders on the Mesat-3b, over the life of the satellite. This capacity will be marketed by NewSat under the Jabiru-2 satellite name. Manufactured by Astrium and launched by Arianespace, Jabiru-2/Measat-3b will be placed at 91.5E at the end of 2013.
