SES S.A. (Euronext Paris: SESG) (LuxX: SESG) has refinanced its remaining USD 1.4bn O3b Networks debt after acquiring the remaining shares of O3b USD 1.4bn of gross debt at a materially lower average funding rate. This will deliver a total of approximately EUR 60m of annual finance cost savings, starting from 2017.
The refinancing was funded using cash that was available at Group level, which included the proceeds of the hybrid bond issued by SES S.A. in November 2016. SES´s weighted average cost of funding is around 4%, which is significantly lower than the average cost of the previous O3b debt.
SES is a satellite fleet operator that delivers differentiated and scalable GEO-MEO, with more than 50 satellites in Geostationary Earth Orbit (GEO) and 12 in Medium Earth Orbit (MEO). SES provides satellite communications services to broadcasters, content and internet service providers, mobile and fixed network operators, governments and institutions, and businesses worldwide.
O3b Networks is a global satellite services provider building a next-generation satellite network for telecommunications operators and Internet Service Providers, as well as enterprise customers and government departments and agencies, providing billions of consumers and businesses in nearly 180 countries with low cost, high speed Internet and mobile connectivity.