Feeds

NewSat seeks $AU36m to get into orbit

Suppliers turn in the pressure

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Australian satellite communications company NewSat is raising $AU36 million to help accelerate its pending satellite launch, pay suppliers and strengthen its balance sheet.

NewSat's Jabiru-1 geostationary communications satellite will provide high capacity to military, defence and government markets as well as other enterprise segments such as resources. It is expected to launch in mid-2014.

The need for speedy cash has been sparked by Lockheed Martin, NewSat’s satellite manufacturer, which is currently fast tracking the procurement of critical components of the satellite and is demanding capital earlier than expected.

NewSat said in an Australian Securities Exchange statement that it has already commenced contributing funds to the procurement, and will continue to contribute in accordance with the satellite procurement agreement.

NewSat will also use the new funds to make a payment to Arianespace for their provision of launch facilities for the satellite.

As part of the capital raising, $10 million has already been placed with sophisticated investors and international financial institutions via financial advisers Lazard.

The rights issue will be offered on the basis of one new share for every four shares held, at an application price of 60 cents per share, which if fully subscribed would raise $AU26 million.

NewSat has currently applied to the French and US based export credit agencies for funding for Jabiru-1. Final approvals are expected early in the second quarter of 2012.

“So far we have secured $US346 million in prelaunch customer contracts and have a promising $US575 million sales pipeline, all of which have assisted us to successfully move to the next stage of export credit funding with US Ex-Im Bank and Coface,” said, NewSat Founder and CEO Adrian Ballintine.

He added that NewSat was rapidly transforming from a Teleport operator into a global satellite operator, with an aggressive multiple satellite strategy. ®

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.