SES Successfully Prices €1 Billion Hybrid Dual-Tranche Bond Issuance

LUXEMBOURG

NOT FOR DISTRIBUTION IN THE UNITED STATES, ITS TERRITORIES AND POWERS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (U.S.A.) OR TO ANY U.S. PERSON (AS DEFINED UNDER THE U.S. SECURITIES ACT OF 1933) OR ANY OTHER JURISDICTION WHERE DISTRIBUTION OF THIS ANNOUNCEMENT IS UNLAWFUL.

SES SA announced the successful launch and pricing of its hybrid dual-tranche bond issuance, under which it agreed to sell a total of €1 billion of Deep Subordinated Fixed Rate Resettable Securities.

The transaction consists of a €500 million 30-year Non-Call (NC) 5.25-year tranche with an initial reset date of December 12, 2029 and a €500 million 30-year NC 8-year tranche with an initial reset date of September 12, 2032. The NC 5.25-year notes will bear a 5.5% annual coupon and are priced at 99.473% of their par value, while the NC 8-year notes will bear a 6% annual coupon and are priced at par value.

The successful outcome was the result of strong investor participation and demand, as evidenced by a significant order book totalling over €4 billion, allowing SES to price the bonds competitively across both tranches.

The instrument is expected to have Ba2 and BB+ credit ratings with Moody’s and Fitch respectively, and will also be at the same level as SES’ €625 million Deeply Subordinated Fixed Rate Resettable Securities with an initial reset date of August 27, 2026. The new hybrid bonds issued by SES are non-dilutive instruments that are expected to receive a 50% equity credit rating from both rating agencies and are classified as financial liabilities under IFRS.

The placement is scheduled for September 12, 2024 and an application has been made to list the bonds on the Luxembourg Stock Exchange. The securities have been placed with a wide range of institutional investors across Europe.

The proceeds of the issue will be used for general corporate purposes, including financing the company. Intelsat acquisition and/or refinancing the Group’s existing liabilities.

Sandeep Jalan, Chief Financial Officer of SES, commented, “We are delighted to have secured this new hybrid offering. The success of this transaction demonstrates investors’ confidence in SES’ investment grade credit and strong cash generation profile.”

Deutsche Bank and Morgan Stanley acted as global coordinators, while BNP Paribas, Citi, HSBC and SMBC acted as joint bookrunners.

Follow us:

Twitter | Facebook | Youtube | Linkedin | Instagram

Read our blogs >

Visit the Media Gallery >

About VOICE

SES has a bold vision to deliver amazing experiences by distributing the highest quality video content around the world and providing seamless data connectivity services worldwide. As a global content and connectivity solutions provider, SES owns and operates a fleet of geosynchronous orbit and medium earth orbit (GEO-MEO) satellite constellations that offer a combination of global coverage and high-performance services. Using its intelligent, cloud-enabled network, SES delivers high-quality connectivity solutions anywhere on land, at sea or in the air, and is a trusted partner for telecommunications companies, mobile network operators, governments, connectivity and cloud service providers, broadcasters, video platform operators and content owners worldwide. The company is headquartered in Luxembourg and listed on the Paris and Luxembourg stock exchanges (Ticker: SESG). For more information: www.ses.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240905028456/en/

Richard Whitening

Investor Relations

Phone +352 710 725 261

[email protected]

Suzanne Ong

Communications

Phone +352 710 725 500

[email protected]

Legal Notice:
This press release is not a document prepared by AFP. AFP is not responsible for its content. If you have any questions about this press release, please contact the contact person/organization stated in the text of the press release.