Inmarsat signs US$700 million financing agreement with the Export-Import Bank of the United States

 

12 May 2011 

Inmarsat plc announces the signing of a 12.5-year direct financing agreement with the Export-Import Bank of the United States (“Ex-Im Bank”) to fund the build of the Inmarsat-5 satellites and certain other related capital items.   

Under the agreement Inmarsat may borrow up to US$700 million and expects drawings to begin during the second quarter.  The facility will have a total availability period of 4 years and then be repayable in equal instalments over a further 8.5 years.  Drawings under the facility will incur interest at a fixed interest rate for the life of the loan.   

The Ex-Im Bank facility will rank as a senior secured creditor of Inmarsat Investments Limited, pari passu with both the existing Senior Credit Facility and EIB Facility, and ahead of the 7.375% Senior Notes due 2017.   Inmarsat Investments Limited is a direct subsidiary of Inmarsat Group Limited.