SES S.A. announced the successful syndication of a €3 billion equivalent acquisition financing package to support the earlier announced agreement for SES to acquire Intelsat S.A. Before the Intelsat deal announcement, Deutsche Bank AG and Morgan Stanley jointly underwrote a €3 billion bridge facility to support SES’s financing requirements as part of the agreement to acquire Intelsat.
This €3 billion bridge facility has been successfully syndicated now, with an oversubscribed level of commitments, to an international group of existing relationships and new banks in the form of a €2.1 billion bridge facility and a $1 billion term loan. This term loan was upsized in syndication on the back of a strong response from the bank group.
The bridge facility serves to provide financing certainty and flexibility in the issuance of bonds. And the bridge facility has a tenor of one year months and is extendable twice by a further six months, while the term loan has a five-year amortizing tenor from its drawl. This term loan financing diversifies funding sources for SES at an attractive rate and provides flexibility for deleveraging over time.
SES also agreed to a two-year extension of the €1.2 billion revolving credit facility (26 June 26, 2019), maintaining a fully committed back-up liquidity facility up to June 26, 2028 with a group of 19 banks.
KEY QUOTE:
“We are delighted to have received overwhelming support of 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.”
– Sandeep Jalan, Chief Financial Officer of SES
