On 29th November 2010, O3b Networks, advised by Portland Advisers and HSBC, achieved Financial Close on a $1.2bn financing for its first 8 satellite MEO constellation which will provide low-latency, fiber-quality internet connectivity between developing markets and the global internet infrastructure.
Nick Flitterman, Portland’s Head of Telecoms and lead advisor to O3b said: “This is a tremendous day for O3b and for those Other Three Billion people its satellites will provide internet coverage for. Despite turbulent financial markets, we have succeeded in structuring a highly innovative blend of ECA-backed and DFI senior debt alongside a tranche of Mezzanine debt, ensuring the company is fully funded through to the launch of its services in 2013.”
The complex financing comprises a US$510m Coface-backed Senior Debt Facility provided by HSBC, ING, CA-CIB and Dexia; a US$115m Senior Debt Facility and a US$145m Mezzanine Facility provided by HSBC Principal Investments, DBSA, AFDB, DEG, Proparco, FMO, IFC and EAIF; and US$410m in equity financing, of which US$230m is new equity investment.
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.
