Spacecom to raise $50m debt

Spacecom is due to launch the Amos 6 satellite in 2016.

Spacecom Satellite Communications Ltd. (TASE:SCC) seeks to exploit the high demand in the corporate bond market, and in advance of a debt issue that it plans to carry out announced yesterday that it had received agreement to the offering from the consortium financing the Amos 6 satellite project.

Spacecom provides satellite communications services around the world through its Amos satellites. The financing consortium comprises Israel Aerospace Industries, which is producing the satellite, and two financial entities from the US and Canada.

In accordance with the understanding between the parties, Spacecom will raise $50 million, with the first principal repayment not before 2020. The parties also agreed that for the new bond series a lien would be placed on the Amos 3 satellite, subordinated to existing liens, and that two thirds of the proceeds of the offering would be deposited in a trustee account, and would be used to repay existing or new Spacecom bonds.

The company, controlled by Shaul Elovitch's Eurocom, added that from 2016 it would be able to take further loans or issue additional bonds, if it meets certain conditions set by the consortium, and that amendments had been made to the financial covenants to which the company was committed in 2015.

The Amos 6 satellite is meant to replace the Amos 2 satellite, due to go out of service in 2016. In late February, Spacecom announced that the launch window for Amos 6 had been deferred, and that it was expected to be in February-March 2016.

Published by Globes [online], Israel business news - www.globes-online.com - on March 5, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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