Global satellite operator SES has made its second trip this year to the public capital markets, issuing a €500m 5-year senior bond.
The notes, which were issued via subsidiary SES Global Americas Holdings, carry a coupon of 1.875% and priced at 99.172…
Global satellite operator SES has made its second trip this year to the public capital markets, issuing a €500m 5-year senior bond.
The notes, which were issued via subsidiary SES Global Americas Holdings, carry a coupon of 1.875% and priced at 99.172 to yield 2.051%. SES stated that the Euro bond carries the lowest coupon in the company’s history.
Proceeds will be used to refinance existing debt. BNP Paribas, Credit Agricole, Commerzbank, Tokyo Mitsubishi and Mizuho acted as book runners on the deal, with BCEE as a co-manager.
Padraig McCarthy, chief financial officer of SES, commented: “We are pleased to have secured this financing, which further strengthens our liquidity profile. The successful conclusion of this bond offering reflects the market’s view of SES as a strong investment grade credit, and underlines our ability to secure funding on attractive terms.”
The financing was heavily oversubscribed with an order book of around €3bn. Asset managers represented 77% of the investors, while banks and private banks took 14%. Geographically, Germany/Austria, France and the UK/Ireland were the leading investors, with 29%, 22% and 22% respectively, whilst Benelux and Switzerland took 15% and 6% respectively.
The company last tapped the capital markets in March when it raised US$1bn through an inaugural dollar-denominated bond offering. In that issuance, SES sold US$750m of 3.6% senior unsecured notes due 2023 and US$250m of 5.3% senior unsecured notes due 2043.
Proceeds from that deal were also used to refinance existing debt. The company had approximately US$1.04bn worth of debt facilities due to mature this year, a US$343m series A 5.29% term loan and £24m (US$37) 5.63% series D term loan that both matured in September and then €500m (US$660m) of 4.375% fixed rate notes due on 21 October.
The company only has once piece of debt due in 2014, a €650m 4.875% senior unsecured bond that matures in July.
