The last of O3b's debt has been taken care of by SES S.A. (Euronext Paris and Luxembourg Stock Exchange: SESG) as the company announced the refinancing of the remaining O3b debt.
Since acquiring the remaining shares in O3b, SES has refinanced the entire $1.4 Billion of gross debt at a materially lower average funding rate. This will deliver a total of approximately 60 euro million of annual finance cost savings, starting from 2017.
The refinancing was funded using cash that was available at Group level, which included the proceeds of the hybrid bond issued by SES S.A. in November 2016. SES's weighted average cost of funding is around 4 percent, which is significantly lower than the average cost of the previous O3b debt.
Padraig McCarthy, CFO of SES said, “The early completion of the O3b debt refinancing is an important source of value creation for shareholders and enhances SES’s overall return on its investment in O3b. O3b’s unique global solution represents an important growth accelerator for SES. The annual financing synergies will allow SES to maximize profitability and drive long-term returns.”