The bond, issued by SES Global Americas Holdings GP and guaranteed by SES S.A., was priced today with a coupon of 1.875 percent (Mid-Swap +73bp). SES is rated Baa2/BBB/BBB (all stable). Proceeds of issuance will be used to refinance existing debt.
With this transaction, SES has taken advantage of the current attractive market conditions to further strengthen its liquidity profile and issue a bond with the lowest coupon in the company's history. This is SES’ second approach to the public capital markets this year, following a USD 1 billion dual-tranche transaction under the 144A format in March.
Today's transaction generated strong interest among more than 200 investors, which contributed to an order book in the area of 3 billion euros. This solid reception allowed the company to price at the tight end of the guidance of MS +75bp (+/-2bp). This pricing at MS +73bp is in line with the issuer's curve and highlights the firm momentum for the credit. The offering was placed with the highly reputable investors with asset managers representing 77 percent while banks and private banks took 14 percent. Geographically, Germany/Austria, France and the UK/Ireland were the leading investors, with 29, 22 and 22 percent, respectively, while Benelux and Switzerland acquired 15 and 6 percent, respectively.
Padraig McCarthy, Chief Financial Officer of SES, said, ”We are pleased to have secured this financing, which further strengthens our liquidity profile. The successful conclusion of this bond offering reflects the market's view of SES as a strong investment grade credit, and underlines our ability to secure funding on attractive terms”.
BNP, Credit Agricole, Commerzbank, Tokyo Mitsubishi and Mizuho acted as book runners, with BCEE as a co-manager.