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Eutelsat Bonds Open Higher On Renewed Partnership With Intelsat

COMMUNICATIONS
  • Eutelsat bonds have opened higher with their EUR 27s and EUR 28s streaming EUR ~1.60 higher at EUR 82.90 and EUR 73.80 respectively.
  • The company announced last night a renewed partnership with Intelsat to partner on OneWeb LEO Constellation in a deal worth up to USD 500M over 7 years, starting mid-2024.
  • Deal appears to have a firm commitment at USD 250M over the first six years with an additional USD 250M option.
  • Implies an annual boost to revenue of USD 36mn over the first six years which is small compared to their EUR 1.1bn in FY23 revenue though the exercise of the additional option presents an upside scenario. Equity clearly happy about the contract.

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