NewSat continues voluntary suspension to complete Jabiru-1 satellite funding


10 December 2012

NewSat Limited requested and was granted a voluntary suspension on 3 December 2012, pending a material announcement in relation to funding for the Jabiru-­?1 satellite project. The Company requires the voluntary suspension to continue until it is in a position to make a substantive announcement in relation to completion of negotiations for the funding of the Jabiru-1 satellite project.

Given the complex nature of the funding involving international government agencies, debt and equity investors, and their limited availability at this time of year, additional time is required to satisfy a number of customary closing conditions and to reach financial close. Further, due to the current state of the discussions and the negotiations, the Company is not able to provide the market with sufficient detailed information at this time and is concerned to ensure the Company's shares do not trade on an uninformed basis. As such, the Company considers it appropriate that it continues the voluntary suspension of its securities to ensure the market can trade on an orderly, fair and fully informed basis upon the recommencement of trading. Based on the advanced status of the negotiations, NewSat anticipates to have negotiations completed as soon as possible. In any event, the Company will be providing updates to the market on a fortnightly basis, the first being on 21 December 2012.

Jabiru-1 satellite funding in final stages

The Company is committed to the highly profitable Jabiru-1 satellite project, which to date has secured US$601 million in pre-launch customer contracts and is expected to generate over US$3 billion of revenue over the 15 year life of the satellite. The project has achieved commitments for US$382 million in senior secured debt from export credit agencies, US Ex-Im Bank and COFACE, and is well advanced in securing the final subordinated debt and equity funds.

As part of our ongoing commitment to our shareholders to provide the best possible outcome, the Company  continues to negotiate better terms with parties and to review all options for generating maximum return.

Jabiru-1 satellite on schedule for 2014 launch

The Jabiru-1 satellite project continues to achieve key milestones towards launch in 2014. Lockheed Martin commenced construction of the satellite at the beginning of 2012 and in June, Lockheed Martin and NewSat engineers completed the Preliminary Design Review. The completion of this critical construction milestone confirmed that the satellite is on schedule for launch with Arianespace from French Guiana in 2014. Work with Arianespace continues to progress favourably and NewSat has recently secured commitments for launch insurance for most of the required amounts at attractive rates via AON insurance services as lead insurance broker.

Profitable core teleport business not affected by suspension

The voluntary suspension will not affect the Company's core teleport business which generates growing monthly recurring revenues and continues its record growth trajectory. The FY2012 period was another record year, with significant positive improvements on all key financial metrics, including a 29% increase in revenue and a 111% increase in EBITDA. The FY2013 outlook appears strong, and NewSat started the financial year with the Company's largest individual teleport contract of US$8.59 million for the Wheatstone Project.

NewSat continues to work diligently to finalise the Jabiru-1 satellite project and will inform the market as  material announcements are required.

In commenting on the voluntary suspension Adrian Ballintine, NewSat Founder and CEO said: 

"NewSat continues to move closer to financial close for the Jabiru-1 satellite project. We have made significant progress over the last six months, with funding being quite complex in nature due to the many moving parts and the involvement of large international government agencies and investors. We are now at the final step in the funding process and well positioned to complete this transaction promptly. To ensure we cover everything appropriately, we require a little more time to finalise matters as we take the last step. To achieve the best possible outcome for our shareholders, and remain diligent and thorough in this process, the extension of the voluntary suspension is necessary, and protects all parties as we head to the completion of funding. We look forward to keeping you informed as we finalise funding."