Asia Broadcast Satellite Said to Seek U.S. Ex-Im Bank Loan
Asia Broadcast Satellite is seeking a loan of about $215 million from the Export-Import Bank of the United States and HSBC Holdings Plc is advising on the financing, according to two people familiar with the matter.
Proceeds will be used to fund the purchase of a satellite from Loral Space & Communications Inc. (LORL) and two from Boeing Co. (BA), the people said, asking not to be identified because the details are private. ING Groep NV has also been retained by Hong Kong- based Asia Broadcast in a consultancy role for part of the funding, one of the people said.
Asia Broadcast Satellite’s Singapore-based spokeswoman, Penny Hill, didn’t immediately respond to questions about the deal when contacted by e-mail and telephone today.
Boeing said last month it had been awarded a contract for four satellites from Asia Broadcast and Satelites Mexicanos SA de CV. The first two satellites, ABS-3A for Asia Broadcast, and Satmex 7 for Satelites Mexicanos, are scheduled to be delivered together in late 2014 or early 2015, according to a March 13 media release.
The export credit agency loan is expected to have a maturity of at least eight years and financing will probably be in place by about the third quarter of 2012, one of the people said today.
Asia Broadcast is a global satellite operator which is expanding its fleet to serve the Atlantic, Pacific and Indian ocean regions. Since the acquisition of its first satellite in 2006, the group has grown to operate four satellites in orbit, according to its website.
To contact the reporter on this story: Katrina Nicholas in Singapore at email@example.com