Successful Placement of Eutelsat SA Inaugural Eurobond Issue and Refinancing
Poster: SySAdmin
Posted on March 19, 2010 at 2:49:01 AM
Successful Placement of Eutelsat SA Inaugural Eurobond Issue and Refinancing
PARIS, March 19, 2010--
- Successful Launching and Pricing of a EUR850 Million Inaugural Eurobond
- New Revolving Credit Facility of EUR450 Million
- Extension of Average Maturity Profile for Eutelsat Communications Group
Debt From 2.7 Years as of 31 December 2009 to 5.3 Years
- Financial Flexibility Improved by Diversifying Investor Base
Eutelsat Communications (Euronext Paris: ETL) announced today the
refinancing of all Eutelsat SA (owned at 96%) existing credit agreements for
a total of EUR1.3 billion which were due in November 2011.
The refinancing is expected to take place through:
- the issuance of a 7 year senior unsecured bonds (the "Bonds") for a
total of EUR850 million; and
- the conclusion of a 5 year new senior unsecured revolving credit
facility for a total of EUR450 million
The order book for the Bonds reached more than EUR3.8 billion,
demonstrating the market's confidence on the long term business model of
Eutelsat. The Bonds will be issued at 99.232 percent and redeemed at 100 per
cent of their principal amount and will have a coupon of 4.125 percent per
annum. The bonds will be cleared through Clearstream and Euroclear.
Application will be made to list the bond on the Luxembourg Stock Exchange
regulated market. The Bonds will mature on the 7th anniversary of their
issue. The delivery and settlement of the Bonds are expected to occur on 26
March 2010.
In addition, a new EUR450 million senior revolving credit facility will
concurrently be implemented by Eutelsat S.A. to refinance the remainder of
its existing EUR1.3 billion credit lines and increase its financial
flexibility. The senior revolving credit facility will be due by 2015, an
exceptional maturity in today's credit markets for a BBB- rating from S&P and
Baa3 for Moody's.
As a result of this refinancing, the Group Eutelsat Communications will
extend the maturity of its financing from 2.7 years as of December 2009 to
5.3 years.
The net proceeds of the Bonds will be used to reimburse current
indebtedness of EUR850 million of Eutelsat SA made up of EUR650 million term
loan and a EUR200 million drawn down out of the existing EUR650 million
revolving credit facility. These credit agreements, which were made in
November 2004 and mature in November 2011, will be fully cancelled and
reimbursed at the closing of the transaction, which is expected to take place
on 26 March 2010.
Commenting on this refinancing, Michel de Rosen, Eutelsat CEO said, "The
market's positive reception of this inaugural bond issue confirms the
strengths of our unique business model that combines growth and
profitability. This successful refinancing also reinforces the capacity of
the Group to implement effectively its long-term strategy."
In conclusion, this refinancing allows the company to diversify its
funding sources and has reinforced its financial flexibility. The overall
transaction is concluded with terms and conditions that are very competitive
in current credit markets.
BNP Paribas, Credit Agricole CIB, Societe Generale CIB and The Royal Bank
of Scotland acted as Joint Lead Managers and Bookrunners to the Bonds and as
Mandated Lead Arrangers and Bookrunners to the new senior revolving credit
facility.
Lazard, Nabarro & Hinge and Veil Jourde acted as advisors to Eutelsat in
this transaction. Latham and Watkins acted as legal advisors to the Lead
Arrangers and Bookrunners in this transaction.
About the Bonds: About the New RCF:
Issuer: Eutelsat S.A. Maximum principal amount: EUR450
million
Amount: EUR850 million Maturity: 5 years
Coupon: 4.125 %
Maturity: 7 years
Market: Luxembourg Stock Exchange
About Eutelsat Communications
Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is
the holding company of Eutelsat S.A. With capacity commercialised on 26
satellites that provide coverage over the entire European continent, as well
as the Middle East, Africa, India and significant parts of Asia and the
Americas, Eutelsat is one of the world's three leading satellite operators in
terms of revenues. At 31 December 2009, Eutelsat's satellites were
broadcasting more than 3,400 television channels and close to 1,100 radio
stations. More than 1,000 channels broadcast via its HOT BIRD(TM) video
neighbourhood at 13 degrees East which serves over 123 million cable and
satellite homes in Europe, the Middle East and North Africa. The Group's
satellites also serve a wide range of fixed and mobile telecommunications
services, TV contribution markets, corporate networks, and broadband markets
for Internet Service Providers and for transport, maritime and in-flight
markets. Eutelsat's broadband subsidiary, Skylogic, markets and operates
services through teleports in France and Italy that serve enterprises, local
communities, government agencies and aid organisations in Europe, Africa,
Asia and the Americas. Headquartered in Paris, Eutelsat and its subsidiaries
employ 635 employees from 27 countries.
http://www.eutelsat.com
Not for distribution, directly or indirectly, in or into the United
States, Canada, Australia or Japan.
The distribution of this document may be restricted by law in certain
jurisdictions. Persons into whose possession this document comes are required
to inform themselves about and to observe any such restrictions.
This document shall not be construed as an offer to the public as defined
under article L.411-1 of the French Code monetaire et financier to the extent
that the bonds will only be offered to (i) providers of investment services
relating to portfolio management for the account of third parties, and/or
(ii) qualified investors (investisseurs qualifies) acting for their own
account.
This document is not for distribution, directly or indirectly, in or into
the United States. This document is neither an offer of securities for sale
nor the solicitation of an offer to purchase securities in the United States
or any other jurisdiction where such offer may be restricted. Securities may
not be offered or sold in the United States absent registration with the
Securities and Exchange Commission (S.E.C.) under the U.S. Securities Act of
1933, as amended or exempt from registration. The bonds have not been and
will not be registered under the U.S. Securities Act and there will be no
public offering of these bonds in the United States. Copies of this document
are not being, and should not be, distributed in or sent into the United
States.
This document is directed only at persons who (i) have professional
experience in matters relating to investments falling within Article 19(5) of
the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
(amended, the "Financial Promotion Order"), (ii) are persons falling within
Article 49(2)(a) to (d) ("high net worth companies, unincorporated
associations etc") of the Financial Promotion Order, (iii) are outside the
United Kingdom or (iv) are persons to whom an invitation or inducement to
engage in investment activity (within the meaning of Section 21 of the
Financial Services and Markets Act 2000) in connection with the issue or sale
of any securities may otherwise lawfully be communicated or caused to be
communicated (all such persons together being referred to as "relevant
persons"). This document must not be acted on or relied on by persons who are
not relevant persons. Any investment or investment activity to which this
document relates is available to relevant persons only and will be engaged in
only with relevant persons.
Eutelsat Press Contacts
Vanessa O'Connor Tel.:+ 33(0)1-53-98-37-91 voconnor@eutelsat.fr
Frederique Gautier Tel.:+ 33(0)1-53-98-37-91 fgautier@eutelsat.fr
Investor Relations
Lisa Sanders Finas Tel.: +33(0)1-53-98-30-92
investors@eutelsat-communications.com
Source: Eutelsat Communications
Eutelsat Press Contacts: Vanessa O'Connor, Tel.:+ 33(0)1-53-98-37-91, voconnor@eutelsat.fr; Frederique Gautier, Tel.:+ 33(0)1-53-98-37-91, fgautier@eutelsat.fr; Investor Relations: Lisa Sanders Finas, Tel.: +33(0)1-53-98-30-92, investors@eutelsat-communications.com
PARIS, March 19, 2010--
- Successful Launching and Pricing of a EUR850 Million Inaugural Eurobond
- New Revolving Credit Facility of EUR450 Million
- Extension of Average Maturity Profile for Eutelsat Communications Group
Debt From 2.7 Years as of 31 December 2009 to 5.3 Years
- Financial Flexibility Improved by Diversifying Investor Base
Eutelsat Communications (Euronext Paris: ETL) announced today the
refinancing of all Eutelsat SA (owned at 96%) existing credit agreements for
a total of EUR1.3 billion which were due in November 2011.
The refinancing is expected to take place through:
- the issuance of a 7 year senior unsecured bonds (the "Bonds") for a
total of EUR850 million; and
- the conclusion of a 5 year new senior unsecured revolving credit
facility for a total of EUR450 million
The order book for the Bonds reached more than EUR3.8 billion,
demonstrating the market's confidence on the long term business model of
Eutelsat. The Bonds will be issued at 99.232 percent and redeemed at 100 per
cent of their principal amount and will have a coupon of 4.125 percent per
annum. The bonds will be cleared through Clearstream and Euroclear.
Application will be made to list the bond on the Luxembourg Stock Exchange
regulated market. The Bonds will mature on the 7th anniversary of their
issue. The delivery and settlement of the Bonds are expected to occur on 26
March 2010.
In addition, a new EUR450 million senior revolving credit facility will
concurrently be implemented by Eutelsat S.A. to refinance the remainder of
its existing EUR1.3 billion credit lines and increase its financial
flexibility. The senior revolving credit facility will be due by 2015, an
exceptional maturity in today's credit markets for a BBB- rating from S&P and
Baa3 for Moody's.
As a result of this refinancing, the Group Eutelsat Communications will
extend the maturity of its financing from 2.7 years as of December 2009 to
5.3 years.
The net proceeds of the Bonds will be used to reimburse current
indebtedness of EUR850 million of Eutelsat SA made up of EUR650 million term
loan and a EUR200 million drawn down out of the existing EUR650 million
revolving credit facility. These credit agreements, which were made in
November 2004 and mature in November 2011, will be fully cancelled and
reimbursed at the closing of the transaction, which is expected to take place
on 26 March 2010.
Commenting on this refinancing, Michel de Rosen, Eutelsat CEO said, "The
market's positive reception of this inaugural bond issue confirms the
strengths of our unique business model that combines growth and
profitability. This successful refinancing also reinforces the capacity of
the Group to implement effectively its long-term strategy."
In conclusion, this refinancing allows the company to diversify its
funding sources and has reinforced its financial flexibility. The overall
transaction is concluded with terms and conditions that are very competitive
in current credit markets.
BNP Paribas, Credit Agricole CIB, Societe Generale CIB and The Royal Bank
of Scotland acted as Joint Lead Managers and Bookrunners to the Bonds and as
Mandated Lead Arrangers and Bookrunners to the new senior revolving credit
facility.
Lazard, Nabarro & Hinge and Veil Jourde acted as advisors to Eutelsat in
this transaction. Latham and Watkins acted as legal advisors to the Lead
Arrangers and Bookrunners in this transaction.
About the Bonds: About the New RCF:
Issuer: Eutelsat S.A. Maximum principal amount: EUR450
million
Amount: EUR850 million Maturity: 5 years
Coupon: 4.125 %
Maturity: 7 years
Market: Luxembourg Stock Exchange
About Eutelsat Communications
Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is
the holding company of Eutelsat S.A. With capacity commercialised on 26
satellites that provide coverage over the entire European continent, as well
as the Middle East, Africa, India and significant parts of Asia and the
Americas, Eutelsat is one of the world's three leading satellite operators in
terms of revenues. At 31 December 2009, Eutelsat's satellites were
broadcasting more than 3,400 television channels and close to 1,100 radio
stations. More than 1,000 channels broadcast via its HOT BIRD(TM) video
neighbourhood at 13 degrees East which serves over 123 million cable and
satellite homes in Europe, the Middle East and North Africa. The Group's
satellites also serve a wide range of fixed and mobile telecommunications
services, TV contribution markets, corporate networks, and broadband markets
for Internet Service Providers and for transport, maritime and in-flight
markets. Eutelsat's broadband subsidiary, Skylogic, markets and operates
services through teleports in France and Italy that serve enterprises, local
communities, government agencies and aid organisations in Europe, Africa,
Asia and the Americas. Headquartered in Paris, Eutelsat and its subsidiaries
employ 635 employees from 27 countries.
http://www.eutelsat.com
Not for distribution, directly or indirectly, in or into the United
States, Canada, Australia or Japan.
The distribution of this document may be restricted by law in certain
jurisdictions. Persons into whose possession this document comes are required
to inform themselves about and to observe any such restrictions.
This document shall not be construed as an offer to the public as defined
under article L.411-1 of the French Code monetaire et financier to the extent
that the bonds will only be offered to (i) providers of investment services
relating to portfolio management for the account of third parties, and/or
(ii) qualified investors (investisseurs qualifies) acting for their own
account.
This document is not for distribution, directly or indirectly, in or into
the United States. This document is neither an offer of securities for sale
nor the solicitation of an offer to purchase securities in the United States
or any other jurisdiction where such offer may be restricted. Securities may
not be offered or sold in the United States absent registration with the
Securities and Exchange Commission (S.E.C.) under the U.S. Securities Act of
1933, as amended or exempt from registration. The bonds have not been and
will not be registered under the U.S. Securities Act and there will be no
public offering of these bonds in the United States. Copies of this document
are not being, and should not be, distributed in or sent into the United
States.
This document is directed only at persons who (i) have professional
experience in matters relating to investments falling within Article 19(5) of
the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
(amended, the "Financial Promotion Order"), (ii) are persons falling within
Article 49(2)(a) to (d) ("high net worth companies, unincorporated
associations etc") of the Financial Promotion Order, (iii) are outside the
United Kingdom or (iv) are persons to whom an invitation or inducement to
engage in investment activity (within the meaning of Section 21 of the
Financial Services and Markets Act 2000) in connection with the issue or sale
of any securities may otherwise lawfully be communicated or caused to be
communicated (all such persons together being referred to as "relevant
persons"). This document must not be acted on or relied on by persons who are
not relevant persons. Any investment or investment activity to which this
document relates is available to relevant persons only and will be engaged in
only with relevant persons.
Eutelsat Press Contacts
Vanessa O'Connor Tel.:+ 33(0)1-53-98-37-91 voconnor@eutelsat.fr
Frederique Gautier Tel.:+ 33(0)1-53-98-37-91 fgautier@eutelsat.fr
Investor Relations
Lisa Sanders Finas Tel.: +33(0)1-53-98-30-92
investors@eutelsat-communications.com
Source: Eutelsat Communications
Eutelsat Press Contacts: Vanessa O'Connor, Tel.:+ 33(0)1-53-98-37-91, voconnor@eutelsat.fr; Frederique Gautier, Tel.:+ 33(0)1-53-98-37-91, fgautier@eutelsat.fr; Investor Relations: Lisa Sanders Finas, Tel.: +33(0)1-53-98-30-92, investors@eutelsat-communications.com