SES has announced a significant milestone with the successful syndication of a US$3.21bn equivalent acquisition financing package, a crucial step in supporting its earlier agreement to acquire Intelsat S.A.
Before the deal announcement, Deutsche Bank AG and Morgan Stanley had jointly underwritten a US$3.21bn bridge facility to meet SES’s financing requirements for the Intelsat acquisition. This bridge facility has been successfully syndicated, receiving a highly oversubscribed commitment from an international group of existing and new banks. The syndication resulted in a US$2.25bn bridge facility and a $1bn term loan, which was upsized due to strong interest from the bank group.
The syndication of the bridge facility not only provides SES with financing certainty and flexibility in the issuance of bonds, but also diversifies its funding sources at an attractive rate. The bridge facility has a 12-month tenor, extendable twice by six months, while the term loan has a five-year amortizing tenor from its draw.
This strategic move 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, SES’s Chief Financial Officer, said, “We are delighted to have received overwhelming support from our banking partners in financing 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 is a long-term financing source.”
