The US Export-Import Bank is to provide a US$171.5m direct loan to SES to help fund the construction and launch insurance of the QuetzSat-1 satellite.
California-based Space Systems Loral is constructing the 32-transponder bird, while AON is placing the…
The US Export-Import Bank is to provide a US$171.5m direct loan to SES to help fund the construction and launch insurance of the QuetzSat-1 satellite.
California-based Space Systems Loral is constructing the 32-transponder bird, while AON is placing the insurance.
Commenting on the loan, John Celli, president of SS/L, said: “(ExIm support) helps us better compete against large government-supported overseas manufacturers that vie for the same business.”
He also claimed that SS/L is one of the only large international aerospace companies that does not rely on government contracts for its business.
The entire capacity of QuetzSat-1 has been leased by EchoStar which in turn will provide DISH Mexico, its Mexican DTH joint venture with local media conglomerate MVS Comunicaciones, with eight Ku band transponders. The remaining 24 transponders will be leased to EchoStar’s sister company, the US DTH provider DISH Network.
Under the agreement between EchoStar and SES, the former is making certain upfront payments to SES to help fund the construction of the satellite and will then make monthly payments for the remainder of the satellite’s service term.
Quetzsat-1 is due to be launched by ILS in 2011. It will be located at 77W, an orbital slot that it currently being filled by EchoStar’s EchoStar 4 satellite.
This is not the first time that SES has sought to tap export credit agency funding. Almost a year ago, the satellite operator secured ECA backing from COFACE for a E523m 12-year credit facility. That financing was used to fund the construction of four new satellites, ASTRA 2E, ASTRA 2F, ASTRA 2G and ASTRA 5B, by EADS Astrium. At the time, the then SES CFO Mark Rigolle stated that the facility further diversified SES funding base.
