SES / Intelsat - comment

SES are moving closer to replacing the acquisition of Intelsat. The company priced two €500m tranches at 4.125% and 4.875% for 2030 and 2033 respectively. The proceeds should be predominantly used to reduce its reliance on its credit acquisition facility, which it intends to pay down in full upon completion of the transaction. The group is fundamentally struggling, even on a combined basis, but for the time being, expectations of European defence contracts and the potential for government support are spoiling fundamental investment strategies in this sector.