SES announces the successful syndication of an acquisition financing package of €3 billion, which will support the previously announced agreement for SES to purchase Intelsat S.A. As part of the agreement for SES to acquire Intelsat, Deutsche Bank AG and Morgan Stanley jointly underwrote a €3 billion bridging loan prior to the announcement of the Intelsat deal. With a significantly oversubscribed level of commitments, this €3 billion bridge facility has now been successfully syndicated to a global group of current and new banks in the form of a €2.1 billion bridge facility and a US$1 billion term loan. Due to the bank group’s robust response, the term loan was increased in syndication.
The purpose of the bridge facility is to offer flexibility and assurance in bond issuance. While the term loan has a five-year amortising tenor from its drawl, the bridge facility has a twelve-month tenor that is extendable twice by an additional six months. Term loan financing gives SES flexibility for gradual deleveraging while diversifying its funding sources at a competitive rate. Additionally, SES and a group of 19 banks have agreed to a two-year extension of the €1.2 billion revolving credit facility, which was signed on June 26, 2019. This means that SES will continue to have a fully committed back-up liquidity facility through June 26, 2028.
“We are delighted to have received overwhelming support from our banking partners in the financing of this important and transformational transaction for SES,” stated Sandeep Jalan, Chief Financial Officer of SES. When it comes to capital markets issue, the bridging facility gives SES flexibility in financing, and the term loan offers long-term funding.
