Satellite operator Satélites Mexicanos (Satmex) has raised US$35m through the issue of senior secured notes. The offering has been made as an addition to its existing senior secured notes, due 2017.
The new notes bear an annual interest of 9.5% and…
Satellite operator Satélites Mexicanos (Satmex) has raised US$35m through the issue of senior secured notes. The offering has been made as an addition to its existing senior secured notes, due 2017.
The new notes bear an annual interest of 9.5% and priced at 102 to yield 8.988%. As with the previous transaction, Jefferies was lead arranger on the offering, which closed on 9 April 2012.
The original US$325m senior secured bond issue was undertaken back in April 2011 as part of Satmex’s wider restructuring plan. The satellite operator filed a pre-packaged plan of reorganisation with the US bankruptcy court, under which its first priority bond holders were paid in full with proceeds from the bond offering. Having participated in a US$96.25m rights issue, Satmex’s second lien senior secured noteholders then took control of the company.
The proceeds from the rights issue and the remaining proceeds from the notes were then used to help fund the order of a new satellite, Satmex 8, from Space Systems Loral.
Satmex’s VP of business development, Clemente Cabello Alcerreca told SatelliteFinance that proceeds from this latest financing will primarily be used to fund the construction and launch of the recently ordered Satmex 7 satellite.
In March 2012, Satmex and Asia Broadcast Satellite signed a joint-procurement agreement with Boeing for the construction of four all-electric 702SP satellites. Satmex has ordered one of these with an option on another.
In a subsequent SEC filing, the company stated that the design, construction, launch and insurance costs of this satellite would total approximately US$165m. SatelliteFinance understands that Satmex is actively seeking support from the US Export Import Bank to help fund the project.
As to whether Satmex is planning to undertake any additional financings, Cabello said that the company had no such plans in the immediate future and that the indentures on the senior notes limited its ability to do so.
