HWL Ebsworth has acted for NewSat Limited (ASX:NWT) on its placement of A$105 million and convertible note issue of US$30 million to institutional and sophisticated investors. Credit Suisse and Baillieu Holst acted as joint lead managers in respect of the placement.
Led by partner, Thomas Kim and closely assisted by special counsel, Sam Dwyer from the firm’s Equity Capital Markets team, HWL Ebsworth was able to assist NewSat in achieving a cornerstone result for the company in completing the required equity component of the ~US$600 funding needed to construct and launch Jabiru-1, Australia’s first Ka-band satellite. Approximately US$400 million of debt will be provided by the export banks of the United States and France respectively, which was committed in July 2012 subject to the company securing the equity component.
NewSat is Australia’s largest pure-play satellite communications company, delivering internet, voice, data and video communications via satellite. With its unique-to-Australia teleport infrastructure, NewSat provides a full range of managed satellite communication services and has established a reputation as the partner of choice for governments, corporations and private enterprises. NewSat’s world acclaimed teleports in Perth and Adelaide are accredited to supply services to the Australian Department of Defence (DRSS) and are recognised as highly secure Global Access Points, supporting certified classified networks to ensure the transmission of vital and sensitive information for government clients.
NewSat will be expanding its satellite capabilities with the Jabiru Satellite Program, beginning with the launch and operation of Jabiru-1. Jabiru-1, a large next generation satellite, will provide superior coverage over South East Asia, the Middle East and North Africa. The leading US based aerospace player Lockheed Martin will build the satellite, while prominent French based satellite launch specialist Arianespace will launch it. Launch of Jabiru-1 is expected in early to mid-2015.
In commenting on the successful completion of equity raising for the Jabiru-1 satellite project, Adrian Ballintine, NewSat Founder and CEO, said:
“Closing the funding for Jabiru-1 further advances the evolution of NewSat into a global satellite operator and is the culmination of many years of hard work. The Jabiru-1 customer pipeline continues to expand and our base teleport business continues to grow month on month. I am very excited about the future prospects for NewSat. I would like to thank all of my team members and advisors who contributed to the successful closing of the placement and the commitment of the ECA facilities.”
Also assisting on the transaction was partner, Alan Maclean and solicitor Nick Cerche from the Banking and Financial Services team as well as senior associates Paul Lewis and David Woodford, associate Sasha Roberts and solicitor Tam Vuong from the commercial department.
