IN-FLIGHT caterer and ground handler Sats announced on Sunday (Nov 19) that it has established a US$3 billion multi-currency debt issuance programme.

The company said that the net proceeds from the programme will be used to refinance existing borrowings, finance potential acquisition and investment opportunities as well as working capital and capital expenditure requirements and other general corporate purposes.

Under the programme, DBS and OCBC will act as joint arrangers and dealers, with OCBC acting as the sole rating adviser for the credit rating exercise.

In a bourse filing, the company said that it could issue notes and perpetual securities denominated in any currency. Each series or tranche of notes may also be issued in different amounts and tenors, and may bear interest at fixed rate, floating rate, or zero coupon.

The notes issued as part of the programme will constitute direct, unconditional, unsubordinated and unsecured obligations of the company.

Meanwhile, the perpetual securities may bear fixed or floating rates of distribution and may have distributions deferred by the company if the pricing supplement provides for this.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Sats also noted that Moody’s has assigned the company with an A3 issuer rating and a baa3 baseline credit assessment. A provisional (P)A3 rating has also been assigned to the programme and is only applicable to the issuance of senior unsecured notes from the programme.

Sats shares closed down 0.7 per cent or S$0.02 to S$2.71 on Friday (Nov 19), before the announcement was made.