SES Raises EUR 1 Billion in Hybrid Bond Offering

Luxembourg-headquartered satellite company SES announced that it has successfully priced a EUR 1 billion hybrid dual-tranche bond offering, consisting of two tranches of EUR 500 million each. The company noted that the proceeds will be used for general corporate purposes, including funding the acquisition of Intelsat or refinancing existing debt.

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Also Read: Satellite Operator SES to Acquire Intelsat for USD 3.1 Billion

Details of the Bond Tranches

The deal comprises two tranches: a EUR 500 million, 30-year non-call (NC) 5.25-year tranche with a 5.5 percent coupon, and a EUR 500 million, 30-year NC 8-year tranche with a 6 percent coupon. SES said strong investor demand pushed the order book above EUR 4 billion, allowing the company to price the notes competitively on both tranches.

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.”

Bond Credit Ratings and Classification

Credit ratings for the bonds are expected to be Ba2 (Moody’s) and BB+ (Fitch), with 50 percent equity credit under IFRS classification. The proceeds will be used for general corporate purposes, the official release said.

Also Read: Digicel Pacific Partners with SES to Enhance Disaster Recovery Communications in Tonga

Settlement is scheduled for 12 September 2024, and the notes will be listed on the Luxembourg Stock Exchange. Deutsche Bank and Morgan Stanley led the transaction, supported by BNP Paribas, Citi, HSBC, and SMBC as joint bookrunners.