According to SATS, this refinancing exercise will result in an "all-in” interest saving of approximately $8.8 million per year.
SATS has launched and priced its inaugural issue of US$500 million ($671.4 million) worth of fixed rate senior unsecured notes. The notes, which are issued under the group’s US$3 billion multicurrency debt issuance (EMTN) programme, carry a coupon of 4.828% per annum (p.a.) and are due on Jan 23, 2029. The programme was newly established on Nov 17, 2023.
The notes are immediately converted into Euros through a cross currency swap to achieve a fixed rate of 3.498% per annum. This is to match the currency of the existing bridge loans to hedge SATS’s foreign currency exposure.
