SES/Intelsat - comment

"Not now" is the summary of yesterday’s shareholder presentation. SES revealed some incremental information on the proposed funding for the Intelsat acquisition, which we will incorporate into our model in due course. However, much of the presentation is dedicated to highlighting its “stable to progressive” dividend policy and what it intends to do with its liquidity stack (buy Intelsat), which is primarily aimed at Appaloosa. Slide 27 reveals that, after the transaction, SES/Intelsat will only have 0.8bn of cash on BS, which is probably adequate. Dividends are only to be raised once leverage drops to below its 3x target. Atlas, SES' biggest commercial shareholder agrees.