Eutelsat Secures Major Debt Refinancing with €1.5 Billion Bond Issue
Published on 02/24/2026 at 04:30 | Redaktion boerse-global.de
Eutelsat Communications has launched a €1.5 billion bond offering, marking the final stage of its extensive financial restructuring plan. The satellite operator aims to use the proceeds, alongside existing credit facilities, to replace costly legacy debt, thereby reducing its future interest expenses.
Financial Performance and Strategic Context
This refinancing initiative follows a period of significant balance sheet improvement. As of December 31, 2025, Eutelsat's net debt stood at €1.3 billion, representing a substantial reduction of nearly €1.4 billion from the previous year. Consequently, the company's net debt-to-EBITDA ratio improved dramatically, falling from 3.92x to 2.00x.
This debt reduction was facilitated earlier by a €1.5 billion capital increase. The raise consisted of a reserved capital increase for core shareholders, which brought in €828 million, and a rights issue that generated approximately €670 million. The company also secured export credit financing of nearly €1 billion, guaranteed by the French state, to fund 340 new Low Earth Orbit (LEO) satellites for its OneWeb constellation.
Bond Issue Details and Debt Targets
The new bond issuance comprises two tranches of senior notes, both guaranteed by Eutelsat S.A. and OneWeb Holdings Limited. The first is a five-year note maturing in 2031, offering a yield of roughly 6.375%. The second is a seven-year note due in 2033, yielding about 6.875%. The transaction's completion remains subject to favorable market conditions.
Combined with a €400 million credit facility signed in November 2025, the capital raised is primarily intended to retire two older, more expensive bonds. The targets are a €600 million bond carrying a 2.25% coupon and maturing in 2027, and another €600 million high-yield bond with a 9.75% interest rate due in 2029. Replacing the latter, in particular, is expected to meaningfully lower the company's ongoing interest burden.
Operational Highlights and Segment Shifts
The company's latest half-year results for 2025-26 reveal a shifting revenue mix. Total revenue reached €591.6 million, a 2.4% decline year-over-year. This dip is attributed to continued softness in the Video segment, which remains impacted by sanctions affecting Russian broadcasters.
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In contrast, the LEO business unit showed robust growth. On a constant currency basis, LEO revenue surged approximately 60% to €110.5 million, driven by fixed connectivity, government services, and mobile connectivity. The company's adjusted EBITDA for the period was €308.2 million, with a margin of 52.1%.
Setback in Asset Sale and Confirmed Outlook
In a separate development, Eutelsat's planned sale of its passive ground infrastructure to EQT Infrastructure VI was terminated in late January 2026. The company stated that not all conditions precedent were satisfied, while media reports suggested the French government blocked the deal on strategic grounds. The transaction would have provided proceeds of around €550 million.
Despite this, Eutelsat has reaffirmed its full-year targets. It expects revenues across its four operational segments to remain stable overall, with LEO-specific revenue projected to grow by 50%. Investors will gain further insight into the company's progress when third-quarter results are published on May 12, 2026, indicating whether strong LEO growth can continue to offset Video segment weakness.
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