Luxembourg-based SES to sell €550 million 5 5/8% perpetual notes

By Paul A. Harris

Portland, Ore., Nov. 22 – Luxembourg-based communications satellite owner and operator SES SA is selling €550 million of 5 5/8% perpetual notes (expected ratings Ba1/BB+), according to a market source.

The stabilization period for the Regulation S only notes starts Tuesday, according to a stabilization notice.

Joint bookrunner JPMorgan is the global coordinator and structuring agent. Deutsche Bank, Goldman Sachs and HSBC are also joint bookrunners. BBVA and Commerzbank are co-lead managers.

The notes will bear interest at a fixed rate, with interest payable annually. There is a short first payment to be made on Jan. 29, 2017.

The first call date is Jan. 29, 2024 at which time the notes are callable at par. They remain callable at par on successive annual payment dates subject to a step-up of mid-swaps plus 25 basis points on and after Jan. 29, 2029, and an additional 75 bps on and after Jan. 29, 2044.

The issuer has the option to defer interest payments on a cash cumulative, compounding basis subject to payment if the issuer repays debt of junior or parity status on its capital structure, redeems the perpetual notes or liquidates.

The Betzdorf, Luxembourg-based company plans to use the proceeds for general corporate purposes, including debt repayment.

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