Stratospheric IPO should steady the ship for satellite giant
Intelsat, one of the leading satellite signal providers to superyacht VSAT companies, has been the subject of a heavily leveraged IPO on the New York Stock Exchange. Its public listing is however, seen as an encouraging sign for its superyacht partners.…
Luxembourg-based Intelsat, which owns one of the world’s largest ‘constellations’ of satellites has instigated one of history’s most indebted IPOs. Intelsat’s satellites transmit signals for VSAT providers NSSLGlobal, MTN Satellite Communications, OmniAccess and KVH Industries.
After much posturing behind the scenes the terms of the PIO mean that Intelsat will raise $472 million from the exercise. This figure though makes a negligible dent in the company’s $15.8 billion, as of the end of 2012. But according to a report on the Financial Time website, Intelsat’s chief executive officer, David McGlade ‘said he felt “very comfortable” with Intelsat’s leverage because its order backlog, worth $10.7bn at the end of 2012, made future earnings very predictable.’
With such a significant portion of the superyacht industry’s VSAT service providers relying on the 50-plus Intelsat satellites circling the earth for the global transfer of data, the company’s wellbeing is intrinsically linked with the reliability of on board connectivity.
As of 2015 MTN Satellite Communications will utilise the first Intelsat EpicNG satellite to provide up to 2GB of bandwidth capacity for its clients in the Caribbean, as part of its ‘next-generation’ technology strategy. Speaking to SuperyachtNews.com MTN’s Liz DeCastro said the IPO would have no bearing on the joint strategy of the companies.
“Whilst the IPO wouldn’t influence our plans, we think it’s a positive step and a business-strengthening exercise”, DeCastro said. “If anything it will strengthen our relationship and they continue to have a bold future vision.”
DeCastro said that the Epic platform would be utilised, first, to boost connectivity for customers in the Caribbean, where the need is greatest, but that it could be rolled out across the globe. “We looking to replicate what we’ve developed with Intelsat with our other partners and apply what we’ve done to the cruise industry to the superyacht industry.”
SuperyachtNews.com also contacted NSSLGlobal regarding Intelsat’s IPO, but a spokesperson for the company declined to comment.
After much posturing behind the scenes the terms of the PIO mean that Intelsat will raise $472 million from the exercise. This figure though makes a negligible dent in the company’s $15.8 billion, as of the end of 2012. But according to a report on the Financial Time website, Intelsat’s chief executive officer, David McGlade ‘said he felt “very comfortable” with Intelsat’s leverage because its order backlog, worth $10.7bn at the end of 2012, made future earnings very predictable.’
With such a significant portion of the superyacht industry’s VSAT service providers relying on the 50-plus Intelsat satellites circling the earth for the global transfer of data, the company’s wellbeing is intrinsically linked with the reliability of on board connectivity.
As of 2015 MTN Satellite Communications will utilise the first Intelsat EpicNG satellite to provide up to 2GB of bandwidth capacity for its clients in the Caribbean, as part of its ‘next-generation’ technology strategy. Speaking to SuperyachtNews.com MTN’s Liz DeCastro said the IPO would have no bearing on the joint strategy of the companies.
“Whilst the IPO wouldn’t influence our plans, we think it’s a positive step and a business-strengthening exercise”, DeCastro said. “If anything it will strengthen our relationship and they continue to have a bold future vision.”
DeCastro said that the Epic platform would be utilised, first, to boost connectivity for customers in the Caribbean, where the need is greatest, but that it could be rolled out across the globe. “We looking to replicate what we’ve developed with Intelsat with our other partners and apply what we’ve done to the cruise industry to the superyacht industry.”
SuperyachtNews.com also contacted NSSLGlobal regarding Intelsat’s IPO, but a spokesperson for the company declined to comment.
Intelsat has a market-leading fleet of 50+ satellites in operation.
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MTN Satellite Communications (MTN)
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