O3b Closes New $137m financing
On 31st October 2011, O3b Networks, advised by Portland Advisers and HSBC, achieved Financial Close on a $137m incremental financing round for the construction of four additional satellites that will boost both capacity and redundancy its MEO satellite constellation.
Nick Flitterman, Portland’s Head of Telecoms and lead advisor to O3b said: “This is another great achievement for O3b and a testament to the strong support of its core investors and lenders for the company’s plan to bring high speed internet connectivity to those Other Three Billion people around the world. Despite continuing difficulties in the financial markets, and increasing pressures on US Dollar liquidity, we have succeeded in structuring the financing in a way that benefits all stakeholders and enables O3b to almost double its capacity over the emerging markets – a win-win for its investors, lenders and customers.”
The additional financing comprises an US$85m Coface-backed Senior Debt Facility provided by HSBC, ING, CA-CIB and Dexia and an additional $52m of equity provided by a group of the existing shareholders and a new investor, Luxempart.
O3b’s shareholders include leading satellite operator SES, Google, the global cable operator Liberty Global, HSBC Principal Investments, the Development Bank of South Africa, Sofina and Satya Capital, with SES now the largest minority shareholder.
For more information on this transaction, or on related topics, please contact Nick directly on nick.flitterman@portlandadvisers.com or +44 20 71 83 83 85. Also see the Case Study describing the role Portland Advisers.
Press coverage of the financing can be find by clicking on the links below.