ITWire

COFACE has given a promised guarantee of the funding in a confidential deal to back the loans for construction of the rocket.

As previously announced by NewSat, financial close of the Ex-Im Bank and COFACE debt facilities was conditional on further funding of  approximately US$200 million, and NewSat will now seek approval of its shareholders to raise the amount of ordinary equity at its general meeting next Monday.

NewSat CEO and founder, Adrian Ballintine, says it is the company’s intention to split the further funding between equity and mezzanine debt to minimise dilution to existing shareholders as much as possible.

“The Company is in ongoing discussions with several interested parties in relation to this funding. It is likely that approximately half of the US$200 million will be subordinated mezzanine debt and the other half equity.”

Ballantine said the issue of the “promesse de garantie” by COFACE followed over six months of due diligence by COFACE and its advisors, and Ex-Im Bank’s recent approval to refer NewSat’s application, for a US$280 million direct loan, to the US Congress.  He said the COFACE guarantee would support a syndicated debt facility to be provided principally by Standard Chartered Bank.

Ballantine also said that, with Ex-Im Bank, NewSat now had over US$380 million of export funding.

“The COFACE and Ex-Im Bank deals are significant milestones towards the launch of Jabiru-1. Demand for Jabiru-1 satellite capacity continues to surpass expectations, with binding pre-launch customer contracts now over US$600 million and a future sales pipeline of over US$500 million across the Jabiru fleet.

“The Jabiru-1 satellite at 70% utilisation is expected to generate more than US$3 billion revenue over the 15 year life of the satellite. Considering satellites in the geography of Jabiru-1 are mostly in excess of 90% utilisation, NewSat’s projections are realistic and achievable.”