Space Business Review - June 2016

SES PRICES €750M BOND OFFERING

On June 3, SES S.A. (SES) priced €750m of 4.625% deeply subordinated fixed rate resettable securities, marking SES' first ever hybrid bond offering. Guaranteed on a subordinated basis by SES Global Americas Holding GP, the bonds will be classified as equity under IFRS and will receive 50% equity treatment from ratings agencies Moody's and S&P's. SES plans to use the net proceeds from the offering to refinance certain of its own existing indebtedness, as well as a portion of the $1.2b of existing indebtedness of O3b Networks, Ltd. (O3b). The offering complements SES' recent €908.8m equity raise to fund acquisition of the remaining 49.5% of O3b shares not already owned by SES.

DISH ANNOUNCES $2B IN SENIOR NOTES

On June 9, DISH Network Corporation (DISH) announced that its subsidiary, DISH DBS Corporation (DISH DBS), priced an offering of $2b aggregate principal amount of 7.75% senior notes due 2026 at an issue price of 100%. DISH announced on June 8 that DISH DBS plans to offer approximately $750m aggregate principal amount of senior notes. In each announcement, DISH stated that it plans to use the net proceeds from the offering for strategic transactions that may involve wireless and spectrum assets.

EUTELSAT LAUNCHES €500 BOND

On June 16, Eutelsat Communications S.A. announced that Eutelsat S.A. (Eutelsat) priced an offering of five-year 1.125% senior unsecured notes at 99.894% for a total of €500m. Eutelsat will use the net proceeds from the offering, together with other sources of balance sheet cash, to redeem at maturity in March 2017 the €850m aggregate principal amount of 4.125% notes that Eutelsat issued in March 2010, which is expected to produce savings of €30m before tax per year.

INTELSAT CLOSES PRIVATE PLACEMENT

On June 30, Intelsat S.A. (Intelsat) announced that its subsidiary, Intelsat Jackson Holdings S.A. (Intelsat Jackson), closed a private placement of $490m aggregate principal amount of 9.5% senior secured notes due 2022 at an issue price of 98%. Intelsat Jackson plans to use the net proceeds from the private placement to fund its previously announced tender offers to purchase its 6.625% senior notes due 2022, 5.5% senior notes due 2023 and 7.5% senior notes due 2021 in accordance with Intelsat's broader initiative to improve its financial position by reducing leverage.

JUNE LAUNCH SERVICES

June 9 - ILS International Launch Services Inc. successfully launched the Intelsat 31 satellite on a...