Inmarsat Plc (LON:ISAT) reported a considerable demand for new bonds, having placed US$650mln convertible bonds due 2023, representing an additional US$50mln over the announced deal size.
The satellite communications provider said the net proceeds of the issue of the new bonds will be used primarily to fund the approximate US$390mln repurchase of the outstanding 1.75% US$287.7mln convertible bonds due 2017.
“The remaining proceeds will further strengthen Inmarsat's financial position and support its strategy of continued investment in innovation and the delivery of global mobile satellite service solutions, where Inmarsat continues to see opportunities for sustained profitable growth,” said the group in a statement Thursday.
Settlement and delivery of the new bonds is expected to take place on 9 September 2016.
It is intended that application will be made for the new bonds to be listed on the Channel Islands Securities Exchange or another recognised stock exchange and the Open Market of the Frankfurt Stock Exchange prior to the first interest payment date.