SES Successfully Prices EUR 1 Billion Hybrid Dual-tranche Bond Offering
September 06 2024 - 1:30AM
Business Wire
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SES S.A. announced the successful launch and pricing of a hybrid
dual-tranche bond offering in which it has agreed to sell Deeply
Subordinated Fixed Rate Resettable Securities for a total amount of
EUR 1 billion.
The transaction is composed of a EUR 500 million 30-year
Non-Call (NC) 5.25-year tranche with a first reset date on 12
December 2029 and a EUR 500 million 30-year NC 8-year tranche with
a first reset date on 12 September 2032. The NC 5.25-year notes
will bear a coupon of 5.5% per annum and were priced at 99.473% of
their nominal value while the NC 8-year notes will bear a coupon of
6% per annum and were priced at par.
The successful outcome was the result of strong investor
engagement and demand as evidenced by a sizeable order book which
peaked above EUR 4 billion in total and allowed SES to price the
notes competitively on both tranches.
The instrument’s credit ratings are expected to be Ba2 and BB+
with Moody’s and Fitch respectively and will also rank pari-passu
with SES outstanding EUR 625 million Deeply Subordinated Fixed Rate
Resettable Securities, with a first reset date on 27 August 2026.
The new hybrid bonds issued by SES are non-dilutive instruments
that are expected to receive 50% equity credit by both rating
agencies and be classified as financial liabilities under IFRS.
The settlement is scheduled for 12 September 2024 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.
Proceeds of the issuance will be used for general corporate
purposes, including financing the acquisition of Intelsat and/or
refinancing any existing indebtedness of the Group.
Sandeep Jalan, Chief Financial Officer of SES, commented, “We
are pleased to have secured this new hybrid offering. The success
of this transaction demonstrates investors' confidence in SES’s
investment grade credit and strong cash-generation profile.”
Deutsche Bank and Morgan Stanley acted as Global Coordinators,
together with BNP Paribas, Citi, HSBC and SMBC as Joint
Bookrunners.
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About SES
SES has a bold vision to deliver amazing experiences everywhere
on Earth by distributing the highest quality video content and
providing seamless data connectivity services around the world. As
a provider of global content and connectivity solutions, SES owns
and operates a geosynchronous orbit fleet and medium earth orbit
(GEO-MEO) constellation of satellites, offering a combination of
global coverage and high performance services. By using its
intelligent, cloud-enabled network, SES delivers high-quality
connectivity solutions anywhere on land, at sea or in the air, and
is a trusted partner to telecommunications companies, mobile
network operators, governments, connectivity and cloud service
providers, broadcasters, video platform operators and content
owners around the world. The company is headquartered in Luxembourg
and listed on Paris and Luxembourg stock exchanges (Ticker: SESG).
Further information is available at: www.ses.com
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version on businesswire.com: https://www.businesswire.com/news/home/20240905028456/en/
Richard Whiteing Investor Relations Tel. +352 710 725 261
richard.whiteing@ses.com Suzanne Ong Communications Tel. +352 710
725 500 suzanne.ong@ses.com
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