Australian satellite operator NewSat has voluntarily suspended trading on the Australian Securities Exchange while it awaits the completion of its funding for the Jabiru-1 satellite.
The company stated that it required additional time to satisfy…
Australian satellite operator NewSat has voluntarily suspended trading on the Australian Securities Exchange while it awaits the completion of its funding for the Jabiru-1 satellite.
The company stated that it required additional time to satisfy certain closing conditions for the financing, which is a combination of export credit agency support, subordinated debt and equity funding. As such, NewSat believes that it is not in a position to provide suitably detailed information to the market.
In an ASX filing, NewSat stated: “Due to the current state of the discussions and the negotiations, the company is not able to provide the market with sufficient detailed information at this time and is concerned to ensure the company’s shares do not trade on an uninformed basis.
“As such, the company considers it appropriate that it continues the voluntary suspension of its securities to ensure the market can trade on an orderly, fair and fully informed basis upon the recommencement of trading.”
While NewSat did not provide a specific time period for when it expects the funding to close, it did state that it has already secured commitments for US$382m in senior secured debt from the US Export-Import Bank and Coface, and that it is ‘well advanced’ in securing the final subordinated debt and equity funds.
It added that it will provide updates to the market on the situation on a fortnightly basis from 21 December onwards.
Commenting on the suspension, NewSat’s founder and CEO, Adrian Ballintine said: “NewSat continues to move closer to financial close for the Jabiru-1 satellite project. We have made significant progress over the last six months, with funding being quite complex in nature due to the many moving parts and the involvement of large international government agencies and investors. We are now at the final step in the funding process and well positioned to complete this transaction promptly. To ensure we cover everything appropriately, we require a little more time to finalise matters as we take the last step.”
Back in July 2012, NewSat announced that Coface had agreed to guarantee a US$102.74m loan, principally provided by Standard Chartered, which will help fund the launch of Jabiru-1 by Arianespace in Q4 2014.
At the same time, the company revealed that Ex-Im Bank had given final approval for a US$280m direct loan to support Lockheed Martin’s construction of the spacecraft.
As part of the announcement, NewSat stated that the completion of both debt facilities was conditioned upon it securing further funding of approximately US$200m, split equally between the issuance of new shares and mezzanine debt.
ArgoSat Advisors has been hired for advice on the satellite project, while Lazard is NewSat’s financial adviser.
