Nascent satellite telecommunications infrastructure provider O3b Networks has finalised its US$1.2bn funding, which will allow it to launch eight satellites in the first half of 2013. The financing is split between US$770m worth of debt and US$410m in…
Nascent satellite telecommunications infrastructure provider O3b Networks has finalised its US$1.2bn funding, which will allow it to launch eight satellites in the first half of 2013.
The financing is split between US$770m worth of debt and US$410m in equity.
The debt includes a US$510m Coface-backed senior debt facility provided by HSBC, ING, CA-CIB and Dexia; a US$115m senior debt facility and a US$145m mezzanine facility from HSBC Principal Investments, DBSA, AFDB, DEG, Proparco, FMO, IFC and EAIF. TelecomFinance understands that the facilities have a maturity of 7-8 years.
The equity, worth US$410m including US$230m in new investment, was provided by the company’s existing shareholders – SES, HSBC, Liberty Global, Google, North Bridge Venture Partners and Allen & Company – but also by new investors including DBSA, Sofina and Satya Capital.
SES, the satellite operator, is expected to provide US$75m in new equity investment with its shareholding in O3b reaching 34%. Within the next two years, SES’ shareholding will increase to 44%, as the company will take on some more responsibilities in the form of in-kind services, Mark Rigolle, the CEO of O3b, told TelecomFinance.
O3b stands for the ‘Other 3 billion’ who do not have regular access to broadband internet. Rigolle explained that the satellites would target Africa, South America, the Middle East and South-East Asia. “We look forward to connecting the unconnected,” he said.
The birds are being built by French constructor Thales Alenia Space and will be launched by Arianespace with a Soyuz launcher from French Guiana.
