Luxembourg’s SES SA, which likes to describe itself as the world’s only multi-orbit satellite player, has announced the successful launch of senior unsecured fixed rates due 2029 for a total amount of 750 billion euro.
The seven-year notes bear a coupon of 3.50 percent and were priced at 99.725 percent of their nominal value, representing a credit spread of 175 basis points and a yield-to-maturity of 3.55 percent.
Proceeds of the issuance will be used for general corporate purposes, which include the refinancing of existing debt.
The transaction was oversubscribed by more than two times. SES said it took advantage of the current credit market conditions to further strengthen its liquidity profile well ahead of the USD 750 million senior debt maturity in April of next year. As a result of today’s transaction, SES has no senior debt maturities to be refinanced until 2024.
BNP Paribas, Commerzbank, Goldman Sachs International, JP Morgan, Société Générale and SMBC acted as Joint Bookrunners. The settlement is scheduled for 14 June 2022 and application has been made for the notes to be listed on the Luxembourg Stock Exchange. The securities were placed with a broad range of institutional investors across Europe.
“We are very pleased to have secured this financing which allows us to further strengthen our liquidity position in an environment of rising interest rates,” Sandeep Jalan, Chief Financial Officer of SES. “The successful conclusion of this bond offering reflects the market’s view of SES as a strong investment grade credit and underlines the ability of SES to secure funding at attractive terms.”
SES is rated Baa2, negative outlook by Moody’s and BBB, stable outlook by Fitch.
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