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Successful Refinancing of Eutelsat Communications Debt
PARIS, December 7, 2011/PRNewswire-FirstCall/ --
- Successful launch and pricing of an EUR800 million Eurobond issue by
Eutelsat S.A.
- New 5-year EUR700 million term loan facility and EUR200 million revolving
credit facility for Eutelsat Communications S.A.
- Extension of average maturity profile for Eutelsat Communications Group debt
from 3.8 years at 30 June 2011 to 5.1 years
- Financial flexibility improved by continuing the diversification of funding
mix
Eutelsat Communications (Euronext Paris: ETL) announced today the refinancing of
Eutelsat Communications' existing EUR1,765 million credit facilities which were due in
June 2013.
The refinancing will take place through:
- the issuance of 7-year senior unsecured bonds (the "Bonds") for a total of
EUR800 million by Eutelsat S.A.; and
- a new 5-year bullet senior unsecured term loan for EUR700 million and senior
unsecured revolving credit facility granted to Eutelsat Communications in a maximum
amount of EUR200 million, both maturing in December 2016
The order book for the Bonds reached more than EUR4 billion, demonstrating the
market's confidence in the long term business model of the Eutelsat Group. The Bonds will
be issued at 99.186 percent and redeemed at 100 per cent of their principal amount and
will have a coupon of 5.00 percent per annum. The Bonds will be cleared through
Clearstream and Euroclear. Application has been 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 the seventh anniversary of their issue. The delivery
and settlement of the Bonds are expected to occur on 14 December 2011.
The Bond issue is accompanied by a new five-year bullet EUR700 million senior
unsecured term loan and a EUR200 million senior revolving credit facility, also with a
five-year maturity allowing Eutelsat Communications to refinance the existing outstanding
term loan, as well as the existing revolving credit lines which are currently undrawn.
As a result of this refinancing, the Eutelsat Communications Group will extend the
maturity of its financing from 3.8 years as at 30 June 2011, to 5.1 years today.
The net proceeds of the Bonds and the new credit facilities will be used to reimburse
current indebtedness of EUR1,465 million of the existing Eutelsat Communications' term
loan; the current undrawn revolving credit facility of EUR300 million will be replaced by
a EUR200 million revolving credit facility. These credit agreements, which were made in
June 2006 and mature in June 2013, will be reimbursed in part following the issuance of
the Bonds in December 2011 then, fully reimbursed and cancelled once the new credit
facilities are available as from January 2012.
Commenting on this refinancing, Catherine Guillouard, Eutelsat's Chief Financial
Officer, said: "The market's positive response to Eutelsat S.A.'s bond issue and new
credit facilities confirm the strength of our unique business model, which sits at the
heart of the digital revolution, and combines growth, profitability and visibility over
the long term. With this overall refinancing of the Eutelsat Communications existing
indebtedness, our Group will have all the flexibility to continue its long-term strategy,
reinforcing its leadership in markets where digital broadcasting and broadband services
are experiencing rapid growth."
This refinancing allows the company to diversify its funding sources, to reinforce its
financial flexibility and to extend the maturity of its debt. The overall transaction is
concluded with terms and conditions that are very competitive given current credit
markets.
Credit Agricole Corporate and Investment Bank, Mitsubishi UFJ Securities International
plc and Societe Generale Corporate & Investment Banking acted as Joint Global Coordinators
and Bookrunners and Banca IMI and Goldman Sachs International acted as Joint Bookrunners
of the Bonds. The Bank of Tokyo-Mitsubishi UFJ, Ltd., Credit Agricole Corporate Investment
Bank and Societe Generale Corporate & Investment Banking acted as Mandated Lead Arrangers
and Bookrunners and Goldman Sachs International, Intesa Sanpaolo S.p.A., Paris branch, and
WestLB London branch acted as Mandated Lead Arrangers for the new senior term loan and
revolving credit facilities.
Rothschild & Cie acted as financial advisors, Latham & Watkins acted as legal advisors
and Sullivan & Cromwell LLP acted as tax advisors to Eutelsat in this transaction. Allen &
Overy LLP acted as legal advisors to the Mandated Lead Arrangers and Bookrunners in this
transaction.
About the Bonds:
Issuer: Eutelsat S.A. About the new RCF: About the new Term Loan:
Amount: EUR 800 million Borrower: Eutelsat Borrower: Eutelsat
Coupon: 5.00% Communications S.A. Communications S.A.
Maturity: 7 years Maximum principal Amount: EUR700 million
Market: Official List amount: EUR200 million Maturity: 5 years
of the Luxembourg Stock Maturity: 5 years
Exchange (Regulated
Market)
About Eutelsat Communications
Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is the holding
company of Eutelsat S.A.. With capacity commercialised on 29 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 30 September 2011, Eutelsat's satellites were
broadcasting more than 3,950 television channels. Nearly 1,100 channels broadcast via its
HOT BIRD(TM) video neighbourhood at 13 degrees East which serves over 120 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 access to high speed internet 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 nearly 700 commercial, technical and operational employees
from 30 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.
France
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 (personnes fournissant le service
d'investissement de gestion de portefeuille pour compte de tiers), and/or (ii) qualified
investors (investisseurs qualifies) acting for their own account as defined in, and in
accordance with Articles L. 411-1, L.411-2, and D.411-1 to D. 411-3 of the French Code
monetaire et financier.
United States
Neither this document nor any copy of it maybe taken, transmitted or distributed,
directly or indirectly, in or into the United States its territories or possessions or to
any US person (as defined in Rule 902 of Regulation S under the US Securities Act of 1933,
as amended).This document does not constitute or form a part of any offer or solicitation
to purchase or subscribe for securities in the United States. Securities may not be
offered or sold in the United States unless they are registered under the U.S. Securities
Act of 1933, as amended (the "U.S. Securities Act"), or exempt from registration. The
Bonds have not been and will not be registered under the U.S. Securities Act and Eutelsat
SA does not intend to make a public offer of the Bonds in the United StatesAny failure to
comply with these restrictions may constitute a violation of United States securities law.
United Kingdom
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, or (iii)
are outside the United Kingdom Neither this document nor any of its contents must 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.
Italy
The offering of the Bonds has not been registered pursuant to Italian securities
legislation and this document shall not be distributed in the Republic of Italy (Italy)
except (i) to qualified investors (investitori qualificati), pursuant to Article 100 of
Legislative Decree No. 58 of 24 February 1998 (the Consolidated Financial Services Act)
and Article 34-ter, paragraph 1, letter (b) of CONSOB regulation No. 11971 of 14 May 1999
(the CONSOB Regulation), all as amended and restated from time to time or (ii) in any
other circumstances where an express exemption from compliance with the restrictions on
offers to the public applies, as provided under Article 100 of the Consolidated Financial
Services Act and Article 34-ter of the CONSOB Regulation No. 11971, in each case in
compliance with Italian law and regulations or requirement imposed by CONSOB or any other
Italian authority.
Source: Eutelsat Communications
For further information: Press: Vanessa O'Connor, Tel. : + 33-1-53-98-37-91, voconnor@eutelsat.fr; Frédérique Gautier, Tel. : + 33-1-53-98-37-91, fgautier@eutelsat.fr; Investors and analysts: Lisa Finas, Tel. : +33-1-53-98-35-30, investors@eutelsat-communications.com; Léonard Wapler, Tel. : +33-1-53-98-31-07, investors@eutelsat-communications.com.
Successful Refinancing of Eutelsat Communications Debt
PARIS, December 7, 2011/PRNewswire-FirstCall/ --
- Successful launch and pricing of an EUR800 million Eurobond issue by
Eutelsat S.A.
- New 5-year EUR700 million term loan facility and EUR200 million revolving
credit facility for Eutelsat Communications S.A.
- Extension of average maturity profile for Eutelsat Communications Group debt
from 3.8 years at 30 June 2011 to 5.1 years
- Financial flexibility improved by continuing the diversification of funding
mix
Eutelsat Communications (Euronext Paris: ETL) announced today the refinancing of
Eutelsat Communications' existing EUR1,765 million credit facilities which were due in
June 2013.
The refinancing will take place through:
- the issuance of 7-year senior unsecured bonds (the "Bonds") for a total of
EUR800 million by Eutelsat S.A.; and
- a new 5-year bullet senior unsecured term loan for EUR700 million and senior
unsecured revolving credit facility granted to Eutelsat Communications in a maximum
amount of EUR200 million, both maturing in December 2016
The order book for the Bonds reached more than EUR4 billion, demonstrating the
market's confidence in the long term business model of the Eutelsat Group. The Bonds will
be issued at 99.186 percent and redeemed at 100 per cent of their principal amount and
will have a coupon of 5.00 percent per annum. The Bonds will be cleared through
Clearstream and Euroclear. Application has been 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 the seventh anniversary of their issue. The delivery
and settlement of the Bonds are expected to occur on 14 December 2011.
The Bond issue is accompanied by a new five-year bullet EUR700 million senior
unsecured term loan and a EUR200 million senior revolving credit facility, also with a
five-year maturity allowing Eutelsat Communications to refinance the existing outstanding
term loan, as well as the existing revolving credit lines which are currently undrawn.
As a result of this refinancing, the Eutelsat Communications Group will extend the
maturity of its financing from 3.8 years as at 30 June 2011, to 5.1 years today.
The net proceeds of the Bonds and the new credit facilities will be used to reimburse
current indebtedness of EUR1,465 million of the existing Eutelsat Communications' term
loan; the current undrawn revolving credit facility of EUR300 million will be replaced by
a EUR200 million revolving credit facility. These credit agreements, which were made in
June 2006 and mature in June 2013, will be reimbursed in part following the issuance of
the Bonds in December 2011 then, fully reimbursed and cancelled once the new credit
facilities are available as from January 2012.
Commenting on this refinancing, Catherine Guillouard, Eutelsat's Chief Financial
Officer, said: "The market's positive response to Eutelsat S.A.'s bond issue and new
credit facilities confirm the strength of our unique business model, which sits at the
heart of the digital revolution, and combines growth, profitability and visibility over
the long term. With this overall refinancing of the Eutelsat Communications existing
indebtedness, our Group will have all the flexibility to continue its long-term strategy,
reinforcing its leadership in markets where digital broadcasting and broadband services
are experiencing rapid growth."
This refinancing allows the company to diversify its funding sources, to reinforce its
financial flexibility and to extend the maturity of its debt. The overall transaction is
concluded with terms and conditions that are very competitive given current credit
markets.
Credit Agricole Corporate and Investment Bank, Mitsubishi UFJ Securities International
plc and Societe Generale Corporate & Investment Banking acted as Joint Global Coordinators
and Bookrunners and Banca IMI and Goldman Sachs International acted as Joint Bookrunners
of the Bonds. The Bank of Tokyo-Mitsubishi UFJ, Ltd., Credit Agricole Corporate Investment
Bank and Societe Generale Corporate & Investment Banking acted as Mandated Lead Arrangers
and Bookrunners and Goldman Sachs International, Intesa Sanpaolo S.p.A., Paris branch, and
WestLB London branch acted as Mandated Lead Arrangers for the new senior term loan and
revolving credit facilities.
Rothschild & Cie acted as financial advisors, Latham & Watkins acted as legal advisors
and Sullivan & Cromwell LLP acted as tax advisors to Eutelsat in this transaction. Allen &
Overy LLP acted as legal advisors to the Mandated Lead Arrangers and Bookrunners in this
transaction.
About the Bonds:
Issuer: Eutelsat S.A. About the new RCF: About the new Term Loan:
Amount: EUR 800 million Borrower: Eutelsat Borrower: Eutelsat
Coupon: 5.00% Communications S.A. Communications S.A.
Maturity: 7 years Maximum principal Amount: EUR700 million
Market: Official List amount: EUR200 million Maturity: 5 years
of the Luxembourg Stock Maturity: 5 years
Exchange (Regulated
Market)
About Eutelsat Communications
Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is the holding
company of Eutelsat S.A.. With capacity commercialised on 29 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 30 September 2011, Eutelsat's satellites were
broadcasting more than 3,950 television channels. Nearly 1,100 channels broadcast via its
HOT BIRD(TM) video neighbourhood at 13 degrees East which serves over 120 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 access to high speed internet 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 nearly 700 commercial, technical and operational employees
from 30 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.
France
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 (personnes fournissant le service
d'investissement de gestion de portefeuille pour compte de tiers), and/or (ii) qualified
investors (investisseurs qualifies) acting for their own account as defined in, and in
accordance with Articles L. 411-1, L.411-2, and D.411-1 to D. 411-3 of the French Code
monetaire et financier.
United States
Neither this document nor any copy of it maybe taken, transmitted or distributed,
directly or indirectly, in or into the United States its territories or possessions or to
any US person (as defined in Rule 902 of Regulation S under the US Securities Act of 1933,
as amended).This document does not constitute or form a part of any offer or solicitation
to purchase or subscribe for securities in the United States. Securities may not be
offered or sold in the United States unless they are registered under the U.S. Securities
Act of 1933, as amended (the "U.S. Securities Act"), or exempt from registration. The
Bonds have not been and will not be registered under the U.S. Securities Act and Eutelsat
SA does not intend to make a public offer of the Bonds in the United StatesAny failure to
comply with these restrictions may constitute a violation of United States securities law.
United Kingdom
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, or (iii)
are outside the United Kingdom Neither this document nor any of its contents must 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.
Italy
The offering of the Bonds has not been registered pursuant to Italian securities
legislation and this document shall not be distributed in the Republic of Italy (Italy)
except (i) to qualified investors (investitori qualificati), pursuant to Article 100 of
Legislative Decree No. 58 of 24 February 1998 (the Consolidated Financial Services Act)
and Article 34-ter, paragraph 1, letter (b) of CONSOB regulation No. 11971 of 14 May 1999
(the CONSOB Regulation), all as amended and restated from time to time or (ii) in any
other circumstances where an express exemption from compliance with the restrictions on
offers to the public applies, as provided under Article 100 of the Consolidated Financial
Services Act and Article 34-ter of the CONSOB Regulation No. 11971, in each case in
compliance with Italian law and regulations or requirement imposed by CONSOB or any other
Italian authority.
Source: Eutelsat Communications
For further information: Press: Vanessa O'Connor, Tel. : + 33-1-53-98-37-91, voconnor@eutelsat.fr; Frédérique Gautier, Tel. : + 33-1-53-98-37-91, fgautier@eutelsat.fr; Investors and analysts: Lisa Finas, Tel. : +33-1-53-98-35-30, investors@eutelsat-communications.com; Léonard Wapler, Tel. : +33-1-53-98-31-07, investors@eutelsat-communications.com.