SES announced the successful syndication of a €3 billion acquisition financing package to support its previously announced agreement to acquire Intelsat S.A.
Prior to the deal’s announcement, Deutsche Bank AG and Morgan Stanley had jointly underwritten a €3 billion bridge facility to meet SES’s financing needs for the Intelsat acquisition.
According to a statement, the €3 billion bridge facility has now been successfully syndicated, with strong interest from international banks. It consists of a €2.1 billion bridge facility and a US$1 billion term loan. Due to high demand, the term loan was increased during syndication.
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.”
The bridge facility ensures financial certainty and offers flexibility for issuing bonds. It has a 12-month term, extendable twice for an additional six months each time, while the term loan features a five-year amortizing term. This term loan diversifies SES’s funding sources and allows for gradual debt reduction. Additionally, SES has extended its €1.2 billion revolving credit facility (initially signed on June 26, 2019) by two years, securing a committed liquidity backup until June 26, 2028, with a consortium of 19 banks.
