Inmarsat launches $550m convertible bond

Satellite services group Inmarsat said on Wednesday that it has launched a bond offering of up to $600m.

The company announced the launch of an offering of around $550m convertible bonds due 2023, with an increase option of up to $50m.

Inmarsat said the net proceeds from the issue of the bonds will be used primarily to fund the repurchase of 1.75% of $287.7m convertible bonds due next year.

The rest of the proceeds will be used to further strengthen the group’s financial position and support its strategy of continued investment in innovation and the delivery of global mobile satellite service solutions, where it continues to see opportunities for sustained profitable growth.

“The new bonds will be issued as part of the Inmarsat group's ongoing plans to optimise financing costs and the group's debt maturity profile. The group currently intends to launch a further benchmark offering in the debt capital markets this year, subject to market conditions.”

Settlement and delivery of the bonds is expected to take place on 9 September.

At 1045 BST, Inmarsat shares were down 5.5% to 760.88p.