SES prices €500m bond offering

Satellite operator SES has launched a €500 million bond offering, agreeing to sell this value of senior unsecured fixed-rate notes that are due in 2026.

SES said it will use the money raised for general corporate purposes, including the refinancing of existing debt. It said the offering takes advantage of “current attractive market conditions”.

BBVA, BNP Paribas, Commerzbank, HSBC, ING and J.P. Morgan acted as joint bookrunners and the securities were placed with a broad range of institutional investors across Europe.

Padraig McCarthy, chief financial officer of SES, said: “We are pleased to have secured this financing which allows us to proactively refinance an upcoming debt maturity at more favourable terms.”

“The successful conclusion of this bond offering reflects the market’s view of SES as a strong investment grade credit and underlines our ability to secure funding at attractive terms.”

SES saw its revenues drop by 5.2% on a like-for-like basis last year, posting revenue of €2.035 billion for the full year. The company reported EBITDA of €1.324 billion, down 7.6% on a like-for-like basis.

Announcing its full year 2017 results last month, SES said that video revenues dropped by 3.6% on a like-for-like basis, attributed to the competitive market environment. The company was also hit by the non-renewal of some contracts to “specific short-term factors” at media services arm MX1.