Successful Placement of Eutelsat SA Inaugural Eurobond Issue and Refinancing
PARIS, March 19, 2010 /PRNewswire-FirstCall/ --
- 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.
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 [email protected]
Frederique Gautier Tel.:+ 33(0)1-53-98-37-91 [email protected]
Investor Relations
Lisa Sanders Finas Tel.: +33(0)1-53-98-30-92
[email protected]
SOURCE Eutelsat Communications
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