On 20 July, NewSat secured a ~US$280 million direct loan from the U.S. based export credit agency for its Jabiru-1 satellite, which will be Australia’s first commercial satellite.
“Chairman Fred Hochberg has a great understanding of the growing global satellite industry and the significant value the Jabiru-1 satellite project can deliver. The tour of NewSat’s Perth teleport enabled Chairman Hochberg a close-up of NewSat’s current business which has a proud history of providing mission critical satellite communications to blue chip customers in oil, gas, mining and military,” said NewSat Founder and CEO, Adrian Ballintine.
The direct loan to NewSat is the Ex-Im Bank’s first satellite transaction in Australia and the first satellite transaction involving Lockheed Martin as the exporter. The transaction will create over 900 jobs in the USA and Australia, and will transform NewSat into a global satellite operator. In FY 2012 to date, the Ex-Im Bank has authorised more than US$3.1 billion in financing for US exports to Australia, its number one market in the world.
“It is fantastic to receive the support of the U.S. Ex-Im Bank. They are backing our Jabiru-1 satellite project with a direct loan, with a favourable low fixed interest rate and long tenure. The deal is an Australian first for Ex-Im Bank and a major milestone towards the launch of Australia’s first commercial satellite.”
NewSat’s Jabiru-1 satellite is now over six months into the construction process with Lockheed Martin and on schedule for launch in 2014 with French company, Arianespace. NewSat has also secured a ~US$102 million debt facility guarantee from French export credit agency, COFACE, for the launch. To date, the Jabiru-1 satellite project has secured US$601 million in binding pre-launch customer contracts, which underpins the loan from the Ex-Im Bank. The transaction with Ex-Im Bank follows over six months of due diligence by Ex-Im Bank and its advisors.
“The Ex-Im Bank is delighted to be part of the transformation of an Aussie teleport company into a global satellite operator, which will generate hundreds of jobs in Australia and across the USA. The Jabiru-1 satellite project at 70% utilisation is expected to generate more than US$3 billion revenue over the 15 year life of the satellite,” said Mr. Ballintine.
Click here to view photos of the teleport tour.
Click here to view media coverage from The Australian.