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Eutelsat announces successful 8-year bond issuance

Press release   •   Jun 06, 2019 18:24 CEST

Launch and pricing by Eutelsat S.A. of a €600 million 2.250 per cent Eurobond due 2027 to refinance its bonds due January 2020. Expected positive impact of approximately €10 million per annum on cash interest contributing to Free Cash-Flow maximization.

Paris, 6 June 2019 - Eutelsat Communications (Euronext Paris: ETL) today announced the successful issue by Eutelsat S.A., of 8-year senior unsecured bonds (the “Bonds”) for a total of €600 million.

Eutelsat has taken advantage of the current competitive market environment to raise long-term financing with a 8-year maturity on attractive terms. The transaction was well received by a diversified investor base, demonstrating the market’s confidence in Eutelsat’s long-term business model.

The Bonds will be issued at 99.822 per cent and will be redeemed at 100 per cent of their principal amount at maturity. They will have a coupon of 2.250 per cent per annum and will be cleared through Euroclear France, Clearstream and Euroclear. An application will be made for the Bonds to be listed on the Official List, and admitted to trading on the regulated market, of the Luxembourg Stock Exchange. The Bonds will mature on 13 July 2027. Delivery and settlement are expected on or around 13 June 2019.

Together with other sources of cash on its balance sheet, the Bonds will enable Eutelsat S.A. to redeem the outstanding bonds issued on 13 December 2013 for a total principal amount of €930 million, bearing interest on its principal amount at a fixed rate of 2.625 per cent per annum and due January 2020.

This operation is expected to contribute to maximize Discretionary Free Cash-Flow and will generate a further pre-tax cash interest saving of approximately €10 million on an annualized basis from FY 2020-21, following the €24 million reduction of this item generated by the previous bond issue in September 2018. Furthermore, this transaction will allow Eutelsat to extend its debt maturity profile.

Global Coordinators: HSBC and SMBC Nikko Capital Markets Limited

Joint-bookrunners: Banca IMI S.p.A., Crédit Agricole Corporate and Investment Bank, HSBC, SMBC Nikko Capital Markets Limited and Société Générale

Co-lead manager:Landesbank Hessen-Thüringen Girozentrale (Helaba)

About the Bonds:

Issuer: Eutelsat S.A.

Amount: €600 million

Coupon: 2.250 per cent

Maturity: 13 July 2027

Settlement Date: 13 June 2019

Market: Official List and Regulated Market of the Luxembourg Stock Exchange

About Eutelsat Communications

Founded in 1977, Eutelsat Communications is one of the world's leading satellite operators. With a global fleet of satellites and associated ground infrastructure, Eutelsat enables clients across Video, Data, Government, Fixed and Mobile Broadband markets to communicate effectively to their customers, irrespective of their location. Over 7,000 television channels operated by leading media groups are broadcast by Eutelsat to one billion viewers equipped for DTH reception or connected to terrestrial networks. Headquartered in Paris, with offices and teleports around the globe, Eutelsat assembles 1,000 men and women from 46 countries who are dedicated to delivering the highest quality of service.

Eutelsat Communications is listed on the Euronext Paris Stock Exchange (ticker: ETL).

For more about Eutelsat go to www.eutelsat.com

Media enquiries
Marie-Sophie Ecuer Tel.: + 33 1 53 98 37 91 mecuer@eutelsat.com
Investors
Joanna Darlington Tel.: +33 1 53 98 35 30 jdarlington@eutelsat.com
Cédric Pugni Tel.: +33 1 53 98 35 30 cpugni@eutelsat.com
Alexandre Enjalbert Tel.: +33 1 53 98 35 30 aenjalbert@eutelsat.com

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Not for distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan. The distribution of this document may be restricted by law in certain jurisdictions. Persons into whose possession this document comes are required to inform themselves about and to observe any such restrictions.

Prohibition of sales to European Economic Area retail investors

No action has been undertaken or will be undertaken to make available any Bonds to any retail investor in the European Economic Area. For the purposes of this provision:

(a) the expression "retail investor" means a person who is one (or more) of the following:

(i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, "MiFID II"); or

(ii) a customer within the meaning of Directive 2016/97/EU, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; and

(b) the expression “offer" includes the communication in any form and by any means of sufficient information on the terms of the offer and the Bonds to be offered so as to enable an investor to decide to purchase or subscribe the bonds.

Consequently no key information document required by Regulation (EU) No 1286/2014 (as amended, the "PRIIPs Regulation") for offering or selling the Bonds or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the Bonds or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.

France

This announcement does not constitute or form part of an offer or solicitation of an offer to purchase or subscribe for securities in France. This document shall not be construed as an offer to the public as defined under article L.411-1 of the French Code monétaire et financier, to the extent that the Bonds will have a denomination of €100,000 and will only be offered to (i) providers of investment services relating to portfolio management for the account of third parties (personnes fournissant le service d'investissement de gestion de portefeuille pour compte de tiers), and/or (ii) qualified investors (investisseurs qualifiés) acting for their own account as defined in, and in accordance with Articles L. 411-1, L.411-2 and D.411-1 of the French Code monétaire et financier.

United Statesof America

Neither this document nor any copy of it may be taken, transmitted or distributed, directly or indirectly, in or into the United States its territories or possessions or to any US person (as defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”)). This document does not constitute or form part of any offer or solicitation of an offer to purchase or subscribe for securities in the United States. The Bonds may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act The Bonds have not been and will not be registered under the U.S. Securities Act and Eutelsat S.A. does not intend to make a public offer of the Bonds in the United States. Any failure to comply with these restrictions may constitute a violation of United States securities law and other applicable laws.

United Kingdom

This document is distributed only to, and is directed only at persons who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) fall within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Order, or (iii) are outside the United Kingdom and to whom it may otherwise lawfully be communicated, (all such persons together being referred to as "relevant persons"). Neither this document nor any of its contents must be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this document relates is available to relevant persons only and will be engaged in only with relevant persons.

Republic of Italy

The offering of the Bonds has not been registered pursuant to Italian securities legislation and this document shall not be distributed in the Republic of Italy (Italy) except (i) to qualified investors (investitori qualificati), pursuant to Article 100 of Legislative Decree No. 58 of 24 February 1998 (the “Consolidated Financial Services Act”) and Article 34-ter, paragraph 1, letter (b) of CONSOB regulation No. 11971 of 14 May 1999 (the “CONSOB Regulation”), all as amended and restated from time to time or (ii) in any other circumstances where an express exemption from compliance with the restrictions on offers to the public applies, as provided under Article 100 of the Consolidated Financial Services Act and Article 34-ter of the CONSOB Regulation, in each case in compliance with Italian law and regulations or requirement imposed by CONSOB or any other Italian authority.

This announcement may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Eutelsat Communications or its subsidiaries about future events and financial performance. No assurance can be given that such events or performance will occur as projected or at all and actual results may differ materially from these projections.

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