MNI BRIEF: BOE Markets Head Sees Wider Collateral, More Repos

MNI PBOC WATCH: PBOC Cuts 7-Day Rate As Reconfigures Framework

MNI China Daily Summary: Monday, July 22

MNI BRIEF: PBOC Lowers Ceiling of Its Interest Corridor

MNI: PBOC Sets Yuan Parity Higher At 7.1335 Mon; -1.18% Y/Y

MNI: PBOC Conducts CNY58.2 Bln Via OMO Mon; 7day Repo Rate Cut

CBRT Data Watch

NBH Data Watch

Pay concerns push back easing expectations; curve flattens

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

SES Announces Intelsat Deal; Spreads Up To 25bps Wider Today, Up To 50bps Wider Since Friday

COMMUNICATIONS
Credit BulletsBulletHomepagemarkets-real-timeCredit
  • SES (Baa3/NR/BBB) has announced the acquisition of Intelsat (NR/NR/BB-) for EUR 2.8bn in cash, aiming to close by H225, to be financed from cash and new debt including hybrids (SES cash and CE were EUR 2.4bn at Q124 as reported this morning).
  • The deal is expected to generate EUR 2.4bn in synergies (85% of the equity value), with 70% realized within three years.
  • SES projects a gross backlog of EUR 9bn (vs. EUR 5bn for SES reported this morning), with combined revenue of EUR 3.8bn (vs. EUR 2bn reported by SES for FY23) and an Adjusted EBITDA of EUR 1.8bn (vs. EUR 1bn reported by SES for FY23).
  • Commitment to IG metrics; net leverage seen at ~3.5x on closing, falling to <3x within 12-18 months (SES net leverage reported this morning was 1.5x).
  • Commitment to an annual dividend of EUR 0.50 per A-share.
  • https://www.ses.com/press-release/ses-acquire-inte...
  • EUR spreads up to 25bps wider with moves since Friday’s close approaching +50bps in places; 27s and 28s taking the brunt of today’s move.
168 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • SES (Baa3/NR/BBB) has announced the acquisition of Intelsat (NR/NR/BB-) for EUR 2.8bn in cash, aiming to close by H225, to be financed from cash and new debt including hybrids (SES cash and CE were EUR 2.4bn at Q124 as reported this morning).
  • The deal is expected to generate EUR 2.4bn in synergies (85% of the equity value), with 70% realized within three years.
  • SES projects a gross backlog of EUR 9bn (vs. EUR 5bn for SES reported this morning), with combined revenue of EUR 3.8bn (vs. EUR 2bn reported by SES for FY23) and an Adjusted EBITDA of EUR 1.8bn (vs. EUR 1bn reported by SES for FY23).
  • Commitment to IG metrics; net leverage seen at ~3.5x on closing, falling to <3x within 12-18 months (SES net leverage reported this morning was 1.5x).
  • Commitment to an annual dividend of EUR 0.50 per A-share.
  • https://www.ses.com/press-release/ses-acquire-inte...
  • EUR spreads up to 25bps wider with moves since Friday’s close approaching +50bps in places; 27s and 28s taking the brunt of today’s move.