Eutelsat Communications (Euronext Paris: ETL) today announced the successful issue by Eutelsat S.A., of 8-year senior unsecured bonds (the “Bonds”) for a total of €600 million.
Eutelsat has taken advantage of the current competitive market environment to raise long-term financing with a 8-year maturity on attractive terms. The transaction was well received by a diversified investor base, demonstrating the market’s confidence in Eutelsat’s long-term business model.
The Bonds will be issued at 99.822 per cent and will be redeemed at 100 per cent of their principal amount at maturity. They will have a coupon of 2.250 per cent per annum and will be cleared through Euroclear France, Clearstream and Euroclear. An application will be made for the Bonds to be listed on the Official List, and admitted to trading on the regulated market, of the Luxembourg Stock Exchange. The Bonds will mature on 13 July 2027. Delivery and settlement are expected on or around 13 June 2019.
Together with other sources of cash on its balance sheet, the Bonds will enable Eutelsat S.A. to redeem the outstanding bonds issued on 13 December 2013 for a total principal amount of €930 million, bearing interest on its principal amount at a fixed rate of 2.625 per cent per annum and due January 2020.
This operation is expected to contribute to maximize Discretionary Free Cash-Flow and will generate a further pre-tax cash interest saving of approximately €10 million on an annualized basis from FY 2020-21, following the €24 million reduction of this item generated by the previous bond issue in September 2018. Furthermore, this transaction will allow Eutelsat to extend its debt maturity profile.
Global Coordinators: HSBC and SMBC Nikko Capital Markets Limited
Joint-bookrunners: Banca IMI S.p.A., Crédit Agricole Corporate and Investment Bank, HSBC, SMBC Nikko Capital Markets Limited and Société Générale
Co-lead manager:Landesbank Hessen-Thüringen Girozentrale (Helaba)
About the Bonds:
Issuer: Eutelsat S.A.
Amount: €600 million
Coupon: 2.250 per cent
Maturity: 13 July 2027
Settlement Date: 13 June 2019
Market: Official List and Regulated Market of the Luxembourg Stock Exchange
Source: Eutelsat Press Release