French credit rating agency to cover O3b financing

8 Sep 2009

O3b Networks has announced that Coface, the export credit agency acting on behalf of the French government, has agreed to provide cover in support of a proposed USD465 million buyer credit facility, itself part of a total USD525 million debt package to be extended by a syndicate of banks to O3b Networks. Coface has advised O3b Networks that it intends to provide long-term credit insurance to facilitate the proposed credit facility.

O3b intends to use the buyer credit for the manufacture of gigabit speed satellites by Thales Alenia Space. The debt financing would also be used to fund certain long-lead items connected with the accelerated delivery of the company’s next-generation satellites and the completion of O3b Networks teleports. Reaching over 100 emerging markets, this new infrastructure promises to provide fibre-quality low latency connectivity for cellular operators and ISPs. In the past year O3b claims to have accrued a backlog of just under USD600 million in service contracts. ‘Funding under the proposed credit facility will place O3b firmly on course to meet its mission and goals,’ said Greg Wyler, founder and CEO of O3b Networks.