Allen & Overy advised the Export-Import Bank of the United States (US Ex-Im), as lender, in the USD471 million debt financing to Kingsbridge Ltd (Kingsbridge), the holding company of Asia Broadcast Satellite’s (ABS) group of operating companies, for the procurement, construction, launch and operation of three new satellites.
Bermuda's Kingsbridge, the head of company of ABS Group, signed the three-tranche credit facility, worth USD471 million with a tenor of 12.5 + 8.5 years, with US Ex-Im and achieved financial close in February 2014. The exceptional hybrid corporate and project financing structure features a unique part-export refinancing feature for an existing USD215 million bank loan as well as a substantial new capex financing, allowing the company to fund construction, launch and insurance of three new-built satellites into a single long-term committed debt package. With a security package spanning across multiple jurisdictions, including the United States, Bermuda, Singapore, Hong Kong, Indonesia, England and the Philippines, the innovative financing offers a number of firsts.
The transaction was the first time US Ex-Im had supported launch services from SpaceX, the world's first privately-held launch services provider; and the first time the ECA had supported Boeing's new 702SP all electric propulsion satellite platform, an industry game-changer. The ABS deal will support approximately 3,700 high tech jobs in the United States, according to US Ex-Im Bank estimates derived from the Departments of Commerce and Labor data and methodology.
In recognition of the creative problem-solving involved in the financing, US Ex-Im presented the 2013 Deal of the Year award to the deal team at the Bank’s 39th Annual Conference in Washington, D.C. April 24, 2014. The transaction was also awarded 2013 Trade Finance Deal of the Year by Trade Finance Magazine.
In commenting on the deal, Kent Rowey, Allen & Overy lead partner said: “Our ability to assist the client in navigating the myriad complex cross-border issues in, and jurisdictional breadth of, the ABS-2 financing bears testament to Allen & Overy’s global reach as a premier international firm – and we are proud to work with U.S. Ex-Im Bank in the continued promotion of American industry abroad.” The core Allen & Overy team was led by projects partner Kent Rowey (New York), with support from New York projects partner Dolly Mirchandani and associates Claire Watson, Andrew Lin, Derek Poon and Molly Watters.
In addition, lawyers in multiple Allen & Overy offices contributed to the success of this transaction, including Hong Kong managing partner Vicki Liu, banking counsel Cerintha Chia and associate Carrie Chong (Singapore), corporate senior associate Andrew Kenning (Abu Dhabi), banking senior associate Erika Singer (London), and banking associate Rachel Leung and litigation trainee Heidi Li (Hong Kong).
