Spacecom Satellite Communications Issues New Corporate Bonds
Spacecom Satellite Communications Ltd, which is controlled by Shaul Elovitch, last week issued two new series of its corporate bonds. The company, whose Amos 6 satellite system has been chosen by Facebook to help them offer internet service by satellite for remote parts of Africa, raised a total of $223.8 million in their offering to institutional investors of two new bond series, 13 and 14.
Total interest expressed in the two series of bonds, of over $312 million, substantially exceeded the amount issued.
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The 13 series bond, which is not linked to the dollar, was offered at a maximum interest rate not to exceed 6.2 percent. The 14 series bond, which is linked to the dollar, was offered at an offered interest rate not to exceed 6.5 percent.
Orders for the series 13 bond came in at $191.8 million, and $137.6 million of this series of bonds were actually issued at an interest rate of 5.5 percent. This will also be the maximum interest rate for the issue. Amortisation of these eight year notes will occur through ten bi-annual repayments, starting in 2018 with final maturity in 2023.
Orders for the company’s 14 series bond reached $128 million, and $86 million were then issued, at an interest rate of 6.35 percent which will also be the maximum rate for this issue. Terms of amortisation are identical to the 13 series issue with an eight year final maturity.