SES has also agreed to a two-year extension of the $1.28bn revolving credit facility, thereby maintaining a back-up liquidity facility until June 26, 2028, with a group of 19 banks.
SES has announced the successful syndication of a $3.21bn equivalent acquisition financing package to support its earlier agreement to acquire Intelsat S.A. Prior to the deal announcement, Deutsche Bank AG and Morgan Stanley had jointly underwritten a $3.21bn bridge facility to meet SESs financing requirements for the Intelsat acquisition. This bridge facility has now been successfully syndicated, receiving a highly oversubscribed level of commitments from an international group of existing and new banks. The syndication resulted in a $2.25bn bridge facility and a $1bn term loan, which was upsized due to strong interest from the bank group.
The bridge facility provides SES with financing certainty and flexibility in the issuance of bonds. It has a 12-month tenor, extendable twice by six months, while the term loan has a five-year amortizing tenor from its draw. The term loan financing diversifies SESs funding sources at an attractive rate and offers flexibility for deleveraging over time. Additionally, SES has agreed to a two-year extension of the $1.28bn revolving credit facility (signed on 26 June 2019), maintaining a fully committed back-up liquidity facility up to 26 June 2028 with a group of 19 banks.
Sandeep Jalan, Chief Financial Officer of SES, said: “We are delighted to have received overwhelming support from our banking partners in the financing of this important and transformational transaction for SES. The bridge facility provides SES with financing flexibility from a capital markets issuance perspective, while the term loan serves as a source of long-term financing.”
