August 2011

A monthly round-up of space industry developments for the information of our clients and friends. EADS Acquires Vizada Secures €165m Ex-Im Facility On August 1, European Aeronautic Defence On August 1, HISPASAT announced a €165m and Space Company EADS N.V. announced loan from JPMorgan Chase Bank guaranteed that its subsidiary Astrium has entered into an by the Export-Import Bank of the United agreement to acquire Vizada, a provider of States to finance the manufacture of the global satellite-based mobility communications Amazonas 3 satellite. Being built by Space services, from Apax France, a private equity Systems/Loral, Amazonas 3 includes 33 Ku- firm, for $960m, pending regulatory approvals. and 19 C-band transponders, plus 9 Ka-band Vizada is the second largest distributor of spot beams, and will provide broadband plc mobile satellite services. The services to Latin America as the region’s first acquisition of Vizada will complement ever Ka-band satellite, to be located at 61°W. Astrium’s existing satellite communications August Launch Services Orders services business, which is largely focused on On August 1, Inmarsat plc subsidiary the governmental and secure civil market, with maritime, aviation and defense customers, as Inmarsat SA selected International Launch well as adding an L-band offering, and Services for the launch of its three Inmarsat- following the launch of Inmarsat’s Global 5 Ka-band Global Xpress™ network Xpress™ network in 2013, a Ka-band satellites currently being built by Boeing offering, to its services portfolio. Satellite Systems International. The satellites are expected to be launched by DISH Seeks FCC Approval of Merger Proton launchers from the Baikonur On August 22, DISH Network Corporation Cosmodrome in 2013 and 2014. (DISH) submitted a filing with the Federal Communications Commission (FCC) August Launches requesting approval to merge DBSD North On August 6, successfully America, Inc. (DBSD) and TerreStar launched the ASTRA 1N satellite for SES Networks, Inc. (TerreStar) into a single entity, S.A. on an launcher from the both recently acquired by DISH following the . Built by Astrium on companies’ Chapter 11 bankruptcy the Eurostar E3000 platform, ASTRA 1N is proceedings for a aggregate price of $2.8b. equipped with 52 Ku-band transponders and DISH intends to combine its existing service Space Business Review will initially provide interim replacement and customer base with TerreStar’s and capacity at 28°E before being deployed to DBSD’s spectrum resources and facilities, 19.2°E to provide direct-to-home services to including TerreStar’s T-1 and DBSD’s G-1 the German, French and Spanish markets. high-power, geo-mobile satellites, to provide On August 12, China Great Wall Industry next-generation broadband services with a Corporation launched the PAKSAT-1R hybrid satellite/terrestrial mobile and fixed satellite for the Pakistan Space & Upper wireless network using 40 MHz of S-band Atmosphere Research Commission on a Mobile Satellite Services (MSS) spectrum. In furtherance of this plan, DISH has requested Long March 3B launcher. Manufactured by the FCC to grant waivers of otherwise the China Academy of Space Technology, applicable existing regulations, which PAKSAT-1R is equipped with 12 C- and 18 preclude MSS operators from having a Ku-band transponders and will provide primarily terrestrial wireless business. telecoms, broadcasting and multimedia services from 38°E. Boeing $750m Dual Tranche Financing Boeing Company subsidiary Boeing Capital Euroconsult Launch Forecast Corporation issued $500m of 2.125% senior On August 25, Euroconsult released its unsecured notes due 2016 and $250m of annual forecast of global launch activity. The 2.9% senior notes due 2018. The notes, which forecast predicts that an estimated 1,145 were rated A2/A/A, will be used to fund debt satellites collectively worth $196b will be maturities over the next year and for general built between 2011 and 2020 – a 51% corporate purposes. BofA Merrill Lynch, increase over the number of satellites built Deutsche Bank and JPMorgan Chase were during the past decade. According to the joint book-running managers for the five-year forecast, roughly 70% of this activity will be BEIJING tranche, and BofA Merrill Lynch, Credit driven by government demand from 50 FRANKFURT different countries, led by the United States, HONG KONG Suisse and Royal Bank of Scotland, for the LONDON seven-year tranche. Russia, Europe, China, Japan and India. LOS ANGELES MUNICH To learn about Milbank’s Space Business Practice, or view previous issues of the Space Business Review, please visit www.milbank.com. NEW YORK The information contained herein is provided for informational purposes only and should not be construed as legal advice on any subject matter. Recipients of this publication should not take or refrain from taking any action based upon content included herein. 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