The Franco-British satellite operator Eutelsat has successfully concluded a €1.5 billion bond offering, finalizing a key strategic refinancing initiative. This move underscores robust capital market confidence in the company’s integrated GEO-LEO strategy, following two credit rating upgrades and a capital increase last year. The transaction establishes a clearer financial foundation for the group.
Financial Restructuring Details
Proceeds from the issuance will be used exclusively for debt management. Eutelsat plans a full buyback of two existing bonds: a €600 million note carrying a 2.25% interest rate and maturing in 2027, and another €600 million note with a 9.75% rate due in 2029. Furthermore, the company will repay and cancel a term loan and a revolving credit facility established in 2021.
The bond issue was structured in two tranches. The first consists of €850 million in Senior Notes with a 5.75% coupon, maturing in 2031. The second is a €650 million tranche of Senior Notes carrying a 6.25% interest rate and due in 2033. Both tranches are being issued at 100% of their nominal value and carry guarantees from Eutelsat S.A. and OneWeb Holdings Limited. Settlement is scheduled for March 5.
To complement this, Eutelsat will draw €400 million from a new credit line agreed upon in November 2025.
Strong Market Confidence and Ratings Momentum
The company’s improved financial outlook has been recognized by major rating agencies. Moody’s elevated Eutelsat’s rating by two notches to Ba3, while Fitch provided an even more substantial upgrade of three notches to BB. Both agencies assigned a stable outlook. Eutelsat targets a reduction in its net debt-to-EBITDA ratio, aiming for approximately 2.5x by the end of the current fiscal year, down from 3.9x in FY 2025.
Half-Year Results Highlight LEO Momentum
This refinancing follows the publication of Eutelsat’s half-year results on February 13. Total revenue reached €592 million, remaining stable on a like-for-like basis despite a reported decline of 2.4%.
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A critical highlight was the performance of the Low Earth Orbit (LEO) segment, which saw revenue surge by nearly 60% to €111 million. This division now contributes roughly one-fifth of the group’s total revenue. Adjusted EBITDA came in at €308 million, with the corresponding margin at 52.1%.
Management has reaffirmed its full-year guidance, anticipating stable revenue from its operational segments, 50% growth in the LEO business, and a year-end net debt-to-EBITDA ratio of around 2.7x.
Market Reaction and Strategic Focus
Following the earnings release in February, Eutelsat’s share price advanced by almost 11%, even as the company reported a net loss of €236 million. Its current market capitalization stands at €2.64 billion.
Formed in 2023 through its merger with OneWeb, Eutelsat operates a fleet of 33 geostationary satellites and a LEO constellation of more than 600 satellites. Its services span Video (approximately 6,300 TV channels), Mobile Connectivity, Fixed Connectivity, and Government Services.
With the bond placement finalized, the company’s refinancing program is nearly complete. The market’s attention will now likely turn to the continued development of the LEO segment, with the next set of financial results due on May 12.
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