[SatNews] The favorable funding outcome includes US$390.1 million of cost-effective debt funding at around 3 percent interest on attractive terms…
NewSat Limited (ASX: NWT) (OTCQX: NWTLY), Australia’s satellite company, announces that a financial close has been reached with the US Ex-Im Bank and COFACE for US$390.1 million of debt funding for the Jabiru-1 satellite project.
Jabiru-1
NewSat has completed or obtained waivers for all the conditions precedent to drawdown the debt funding of US$300.5 million from the U.S. Ex-Im Bank and US$89.6 million from the COFACE Promesse de Garantie. The drawdown will commence with a US$78.9 million payment to Lockheed Martin, taking total progress payments for construction of the Jabiru-1 satellite to US$169.9 million. In addition, a progress payment of US$34.7 million will be made to Arianespace for the launch service, following the initiation of mission analysis in December 2013 in Newtown, Pennsylvania, USA.
To satisfy all conditions precedent and to facilitate NewSat's direct loan account of US$300.5 million with the U.S. Ex-Im Bank becoming operative, NewSat has raised $2.15 million as a result of closing activities, funds that will be reimbursed through the bank facilities. The Company undertook a placement of 5 million shares at a price of $0.43 per share, which represents a 6.5 percent discount to the NewSat closing share price on February 13, 2014 of $0.46. The new shares were issued to an existing long term investor.
In commenting on financial close of the Jabiru-1 satellite project, NewSat Founder and CEO, Adrian Ballintine said, “The journey to complete the Jabiru-1 satellite financing has now concluded, and the project is fully funded. The favorable funding outcome includes US$390.1 million of cost-effective debt funding at around 3 percent interest on attractive terms, such as drawing down the debt during the construction period without any principal repayments until after launch.”
“With US$644 million of pre-launch customer contracts already secured, I look forward to keeping shareholders up-to-date on progress as we approach the launch of Jabiru-1, from satellite construction at Lockheed Martin in the USA to the launch service preparation at Arianespace in France.” For more information, please visit.
