Obbligazione Eutelsat Connect 4.125% ( FR0010877183 ) in EUR

Eutelsat Connect

100 EUR ▼

Francia

FR0010877183 ( in EUR )

4.125% per anno ( pagato 1 volta l'anno)

27/03/2017 - Obbligazione è scaduto

Prospetto opuscolo dell'obbligazione Eutelsat FR0010877183 in EUR 4.125%, scaduta

50 000 EUR

850 000 000 EUR

Eutelsat Communications è un operatore di telecomunicazioni satellitari che fornisce servizi di trasmissione televisiva, dati e connettività a clienti in Europa, Medio Oriente, Africa e Asia.

The Obbligazione issued by Eutelsat Connect ( France ) , in EUR, with the ISIN code FR0010877183, pays a coupon of 4.125% per year.
The coupons are paid 1 time per year and the Obbligazione maturity is 27/03/2017

EUTELSAT S.A.
850,000,000 4.125% BONDS DUE 2017
ISSUE PRICE: 99.232 PER CENT

The 850,000,000 aggregate principal amount 4.125 per cent. bonds due 27 March 2017 (the Bonds) of Eutelsat S.A. (the Issuer) will be issued outside the
Republic of France on 26 March 2010 (the Bond Issue).
Each Bond will bear interest on its principal amount at a fixed rate of 4.125 per cent. per annum from (and including) 26 March 2010 (the Issue Date) to (but
excluding) 27 March 2017, payable in Euro annually in arrear on 27 March in each year and commencing on 27 March 2011, except that the first payment of
interest on 27 March 2011 will be in respect of the period from (and including) the Issue Date to (but excluding) 27 March 2011 and will amount to
2,068.15 per Bond (as further described in "Terms and Conditions of the Bonds - Interest").
Unless previously redeemed or purchased and cancelled in accordance with the terms and conditions of the Bonds, the Bonds will be redeemed at their
principal amount on 27 March 2017 (the Maturity Date).
The Issuer may at its option, and in certain circumstances shall, redeem all (but not part) of the Bonds at par plus any accrued and unpaid interest upon the
occurrence of certain tax changes as further described in the section "Terms and Conditions of the Bonds - Redemption and Purchase - Redemption for tax
reasons".
The Bondholders may under certain conditions request the Issuer to redeem all or part of the Bonds following the occurrence of certain events triggering a
downgrading of the Bonds as further described in the Section "Terms and Conditions of the Bonds Redemption and Purchase - Redemption following a
Change of Control".
The obligations of the Issuer in respect of principal and interest payable under the Bonds constitute direct, unconditional, unsecured and unsubordinated
obligations of the Issuer and shall at all times rank pari passu among themselves and pari passu with all other present or future direct, unconditional,
unsecured and unsubordinated obligations of the Issuer, as further described in "Terms and Conditions of the Bonds - Status".
Payments in respect of the Bonds will be made without deduction for, or on account of, French taxes to the extent set out in the section "Terms and
Conditions of the Bonds - Taxation Additional Amounts".
The Commission de Surveillance du Secteur Financier (the CSSF) in its capacity as competent authority under the Luxembourg Act dated 10 July 2005 on
prospectuses for securities (the Prospectus Act) has approved this document as a prospectus for the purposes of Article 5.3 of Directive 2003/71/EC (the
Prospectus Directive) and of the Prospectus Act. Application has also been made to the Luxembourg Stock Exchange for the Bonds to be listed on the Official
List and admitted to trading on the regulated market of the Luxembourg Stock Exchange as of the Issue Date. The Luxembourg regulated market of the
Luxembourg Stock Exchange is a regulated market for the purposes of the Investment Services Directive 2004/39/EC on financial instruments markets.
The Bonds will be issued in dematerialised form in the denomination of 50,000 and will at all times be evidenced by book-entries in compliance with Article
L. 211-3 of the French Code monétaire et financier. No physical documents of title will be issued in respect of the Bonds. As from the date of issue of the
Bonds, the Bonds will be registered in the books of Euroclear France (acting as central depositary) which shall credit the accounts of Account Holders (as
defined in "Terms and Conditions of the Bonds - Form, Denomination and Title") including Euroclear Bank S.A./N.V. and the depositary bank for Clearstream
Banking, société anonyme.
The Bonds have been assigned a rating of BBB- by Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies Inc. (S&P). A rating is not a
recommendation to buy, sell or hold the Bonds. Any credit rating is subject to revision, suspension or withdrawal at any time by the relevant rating
organisation. Any revision, suspension, reduction or withdrawal of the rating may adversely affect the market price of the Bonds.
This document is not for distribution, directly or indirectly, in or into the United States. This document is neither an offer of securities for sale nor the
solicitation of an offer to purchase securities in the United States or any other jurisdiction where such offer may be restricted. Securities may not be offered
or sold in the United States absent registration with the Securities and Exchange Commission under the U.S. Securities Act of 1933, as amended (the
Securities Act), or an applicable exemption from registration. The Bonds have not been and will not be registered under the Securities Act and may not be
offered, sold or delivered within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the Securities Act
(Regulation S)). Copies of this document are not being, and should not be, distributed in or sent into the United States.
An investment in the Bonds involves certain risks. Potential investors should review all the information contained in this document and, in particular, the

information set out in the section entitled "Risk Factors" of this Prospectus prior to investing in the Bonds.
Joint Lead Managers
BNP PARIBAS
CRÉDIT AGRICOLE CIB
SOCIÉTÉ GÉNÉRALE COPORATE & INVESTMENT BANKING
THE ROYAL BANK OF SCOTLAND
Date: 24 March 2010

TABLE OF CONTENTS

Page

RESPONSIBILITY STATEMENT .............................................................................................................................3
IMPORTANT INFORMATION FOR INVESTORS ....................................................................................................3
SELECTED FINANCIAL INFORMATION OF EUTELSAT S.A. ...................................................................................6
RISK FACTORS ...................................................................................................................................................10
TERMS AND CONDITIONS OF THE BONDS .......................................................................................................27
USE OF PROCEEDS ............................................................................................................................................40
INFORMATION ABOUT THE ISSUER..................................................................................................................41
BUSINESS OVERVIEW........................................................................................................................................46
INDEBTEDNESS OF THE ISSUER ........................................................................................................................82
RECENT DEVELOPMENTS..................................................................................................................................83
TAXATION .........................................................................................................................................................84
SUBSCRIPTION AND SALE .................................................................................................................................88
GENERAL INFORMATION..................................................................................................................................91
FINANCIAL INFORMATION...............................................................................................................................F-1

2

RESPONSIBILITY STATEMENT
As of the date of this Prospectus, to the best knowledge of the Issuer, having taken all reasonable
care to ensure that such is the case, the information contained in this Prospectus is in accordance
with the facts and makes no omission likely to affect the import of such information. The Issuer
accepts responsibility for the information contained in this Prospectus accordingly.
IMPORTANT INFORMATION FOR INVESTORS
References herein to the Issuer are to Eutelsat S.A. This Prospectus has been prepared for the
purpose of giving information with regard to (i) the Issuer, (ii) the Issuer and its subsidiaries (direct
or indirect) and affiliates taken as a whole (the Group) but excluding its controlling entities Eutelsat
Communications S.A. and Eutelsat Communications Finance S.A.S., and (iii) the Bonds, which is
necessary to enable investors to make an informed assessment of the assets and liabilities,
financial position and profit and losses of the Issuer. No information contained in this Prospectus
may be used for any purposes other than investing in the Bonds.
Certain information contained in this Prospectus has been extracted from sources which the Issuer
believes to be reliable, specified in the sections where such information appears. The Issuer
confirms that such information has been accurately reproduced and that, so far as it is aware and is
able to ascertain from information published by the above sources, no facts have been omitted
which would render the information in this Prospectus inaccurate or misleading in any material
respect.
The Joint Lead Managers (as defined under Subscription and Sale) have not verified the
information contained in this Prospectus. The Joint Lead Managers do not make any
representation, warranty or undertaking, express or implied, and no responsibility or liability is
accepted by the Joint Lead Managers or any of their respective affiliates as to the accuracy or
completeness of the information contained in this Prospectus or any other information provided by
the Issuer in connection with the issue of the Bonds.
Any decision to purchase any Bonds should be based on this Prospectus. No person is or has been
authorised by the Issuer or the Joint Lead Managers or any of their affiliates to give any information
or to make any representation other than those contained in this Prospectus in connection with the
issue or sale of the Bonds and, if given or made, such information or representation must not be
relied upon as having been authorised by the Issuer or the Joint Lead Managers or any of their
affiliates. Neither the delivery of this Prospectus nor the offering, sale or delivery of any Bonds shall
in any circumstances imply that the information contained herein is correct at any time subsequent
to the date hereof, nor does the Issuer undertake to update this Prospectus except as may be
required by applicable law or regulations. The Joint Lead Managers do not undertake to review the
financial condition or affairs of the Issuer during the life of the Bonds or to advise any investor in
the Bonds of any information coming to their attention.
Neither this Prospectus nor any other information provided in connection with the issue of the
Bonds (a) is intended to provide the basis of any credit or other evaluation or (b) should be
considered as a recommendation by the Issuer or the Joint Lead Managers that any recipient of this
Prospectus or any recipient of any other information supplied in connection with the issue of the
Bonds should purchase any Bonds. Neither this Prospectus nor any other information supplied in
connection with the issue and sale of the Bonds constitutes an offer or invitation by or on behalf of
the Issuer or the Joint Lead Managers to any person to subscribe for or to purchase any Bonds.
3

Prospective investors contemplating purchasing any Bonds should rely on their own independent
investigation and appraisal of (a) the Issuer, the Group, their respective business, financial
condition and affairs and (b) the terms of the offering, including the merits and risks involved. The
contents of this Prospectus are not to be construed as legal, business or tax advice. Each
prospective investor should consult its own advisers as to legal, tax, financial, credit and related
aspects of an investment in the Bonds. Potential investors should, in particular, read carefully the
section entitled "Risk Factors" set out below before making a decision to invest in the Bonds.
This Prospectus does not constitute an offer of, or an invitation or solicitation by or on behalf of the
Issuer or the Joint Lead Managers to subscribe or purchase, any of the Bonds in any jurisdiction
where, or to any person to whom, it is unlawful to make an offer or solicitation. The distribution of
this Prospectus and the offering and sale of the Bonds in certain jurisdictions, including the United
States, France, Luxembourg and other Member States of the European Economic Area, may be
restricted by law. The Issuer and the Joint Lead Managers do not represent that this Prospectus
may be lawfully distributed, or that any Bonds may be lawfully offered, in compliance with any
applicable registration or other requirements in any such jurisdiction, or pursuant to an exemption
available thereunder, or assume no responsibility for facilitating any such distribution or offering. In
particular, no action has been taken by the Issuer or the Joint Lead Managers which would permit a
public offering of any Bonds, and neither this Prospectus nor any advertisement or other offering
material may be distributed or published in any jurisdiction, except under circumstances that will
result in compliance with any applicable laws and regulations. Persons into whose possession this
Prospectus or any Bonds may come must inform themselves about, and observe any, such
restrictions on the distribution of this Prospectus and the offering and sale of Bonds. In particular,
there are restrictions on the distribution of the Prospectus and the offer or sale of Bonds in the
United States, the United Kingdom and France (see Subscription and Sale).
The Bonds have not been and will not be registered under the Securities Act and may not be
offered, sold or delivered within the United States or to, or for the account or benefit of U.S.
persons (as defined in Regulation S under the Securities Act (Regulation S)).
The information in the sections concerning clearing systems has been obtained from sources that
the Issuer believes to be reliable. The Issuer accepts no responsibility for the accuracy of such
information, other than for the correct extraction and reproduction of such information. If
investors want to use the facilities of Clearstream or Euroclear, they should confirm the continued
applicability of the rules, regulations and procedures of Clearstream or, as applicable Euroclear.
The Issuer will not be responsible or liable for any aspect of the records held through the facilities
of Clearstream or Euroclear or for maintaining, supervising or reviewing any such records.
An application has been made to admit the Bonds to listing on the Official List of the Luxembourg
Stock Exchange and to trading on the Luxembourg regulated market but we cannot guarantee that
our application to listing and trading of the Bonds will be approved as at the Issue Date or any time
after the Issue Date.
In this Prospectus, unless otherwise specified or the context requires, references to "Euro", "EUR"
and "" are to the single currency of the participating member states of the European Economic
and Monetary Union.
In connection with the issue of the Bonds, Société Générale (the Stabilising Manager) (or any
person acting on behalf of any Stabilising Manager) may over-allot Bonds or effect transactions
with a view to supporting the market price of the Bonds at a level higher than that which might
otherwise prevail. However, there is no assurance that the Stabilising Manager (or any person
acting on behalf of any Stabilising Manager) will undertake stabilisation action. Any stabilisation
action may begin on or after the date on which adequate public disclosure of the terms of the
4

offer of the Bonds is made and, if begun, may be ended at any time, but it must end no later than
the earlier of 30 days after the issue date of the Bonds and 60 days after the date of the
allotment of the Bonds. Any stabilisation action or over-allotment must be conducted by the
Stabilising Manager (or any person acting on behalf of the Stabilising Manager) in accordance
with all applicable laws and rules.
The market data and other statistical information used throughout this Prospectus are based on
estimates which the Issuer has made in good faith, review by the Issuer of internal surveys as well
as analysis prepared, based on or derived from independent industry publications, government
publications, reports by market research firms or other published independent sources. These
publications and surveys generally state that they contain information from sources believed to be
reliable but do not guarantee the accuracy and completeness of such information. While the Issuer
believes these sources are reliable and such information was accurately reproduced in this
Prospectus, the Issuer has not verified the research by any independent source.
The Issuer cannot assure that any of the assumptions underlying these statements are accurate or
correctly reflect the Issuer's position in the industry and none of the internal surveys or information
of the Issuer has been verified by any independent sources. Neither the Joint Lead Managers nor
the Issuer make any representation or warranty as to the accuracy or completeness of this
information. All of the information set forth in this Prospectus relating to the operations, financial
results or market share of our competitors has been obtained from information made available to
the public in such companies' publicly available reports and independent research, as well as from
the Issuer's experience, internal studies, estimates and investigation of market conditions. Neither
the Joint Lead Managers nor the Issuer have independently verified this information and cannot
guarantee its accuracy.
Potential investors must rely upon their own examination of the Issuer and the financial statements
presented in this Prospectus. Certain financial information contained or incorporated by reference
in this Prospectus has been rounded and, as a result, the figures shown as totals may vary slightly
from the exact arithmetic aggregation of the figures that precede them.
Certain statements contained herein are forward-looking statements including, but not limited to,
statements that are predictions of or indicate future events, trends, plans or objectives, based on
certain assumptions and include any statement that does not directly relate to a historical fact or
current fact. The Issuer may also make forward-looking statements in its audited annual financial
statements, in its interim financial statements, in its prospectuses, in press releases and other
written materials and in oral statements made by its officers, directors or employees to third
parties. Forward-looking statements are typically identified by words or phrases such as, without
limitation, "anticipate", "assume", "believe", "continue", "estimate", "expect", "foresee", "intend",
"may increase" and "may fluctuate" and similar expressions or by future or conditional verbs such
as, without limitation, "may", "will", "should", "would" and "could." Although the Issuer believes
that expectations reflected in its forward looking statements are reasonable as of the date of this
Prospectus, there can be no assurance that such expectations will prove to have been correct.
Undue reliance should not be placed on such statements, because, by their nature, they are subject
to known and unknown risks, uncertainties, and other factors. These factors include those set forth
in section entitled "Risk Factors" below.
The risks described in this Prospectus are not the only risks an investor should consider. New risk
factors emerge from time to time and it is not possible for the Issuer to predict all such risk factors
on its business or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward looking statements. The Issuer
undertakes no obligation to update the forward-looking statements contained in this Offering
Memorandum or any other forward-looking statement it may make.
5

SELECTED FINANCIAL INFORMATION OF EUTELSAT S.A.
The tables below provide selected financial information from the Issuer's consolidated balance sheets,
income statements, EBITDA calculations and statements of consolidated cash flows, in compliance with, for
the purposes of the issue of the Bonds contemplated in this Prospectus, IFRS for the last two financial years
ended 30 June 2008 and 30 June 2009 and for the half-year ended 31 December 2009.
The main accounting principles used by the Issuer in preparing its consolidated financial statements for the
last two financial years and for the half-year ended 31 December 2009 are set out respectively in Note 4
and Note 3 of the notes to the Issuer's consolidated financial statements, as provided herewith under
"Financial information".
The financial statements of the Issuer and the auditors' reports related thereto, included herewith under
"Financial information" of this Prospectus are uncertified English translations and were originally issued in
French and are provided solely for the benefit of English-speaking users.
Selected financial information from the Consolidated Balance Sheets of the Issuer

Eutelsat S.A.
For the year ended
For the 6 months ended
30 June 2008
30 June 2009
31 December 2009
(in millions Euros)
(Audited)
(Audited)
(Unaudited)
Total of non-current assets
2,408.5
2,556.0
2,657.4
Total current assets
377.0
466.8
405.7
Total assets
2,785.5
3,022.8
3,063.1
Total shareholders' equity
1,432.1
1,481.2
1,392.2
Total non-current liabilities
1,138.3
1,235.3
1,389.0
Total current liabilities
215.1
306.3
281.9
Total liabilities and shareholders' equity
2,785.5
3,022.8
3,063.1
NET DEBT(1)
1,031.0
1,014.9
1,224.7
(1)
Net debt includes all bank debt and Intra-group loans as well as debt associated with long-term leases, minus cash and marketable
securities (net of credit balances with banks).

6

Selected financial information from the Consolidated Income Statements of the Issuer

Eutelsat S.A.
For the year ended
For the 6 months ended
30 June 2008
30 June 2009
31 December 2008
31 December 2009
(in millions Euros)
(Audited)
(Audited)
(Unaudited)
(Unaudited)
REVENUES
879.1
941.9
464.2
508.8
Operating costs
(69.2)
(70.6)
(32.1)
(36.3)
Selling, general and administrative expenses
(104.4)
(120.1)
(51.8)
(56.0)

Depreciation and amortisation
(256.4)
(249.8)
(121.2)
(135.1)
Other operating income
3.8
145.8
25.1
0.1
Other operating charges
(12.0)
(121.5)
-
(0.4)
OPERATING INCOME
440.9
525.7
284.2
281.1
Net financial items
(41.7)
(35.9)
(18.6)
(11.3)
CONSOLIDATED NET INCOME
274.1
336.8
180.9
183.2
NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS
274.1
337.5
181.0
183.5
OF THE PARENT

Selected financial information from the Consolidated Statements of Cash Flow of the Issuer

Eutelsat S.A.
For the year ended
For the 6 months ended
30 June 2008
30 June 2009
31 December 2008
31 December 2009
(in millions Euros)
(Audited)
(Audited)
(Unaudited)
(Unaudited)
Net cash flows from operating activities
554.6
606.9
317.5
310.3
Net cash flows used in investing activities
(420.4)
(293.6)
(138.2)
(223.0)
Net cash flows used in financing activities
(148.1)
(172.6)
(73.2)
(151.4)
INCREASE (DECREASE) IN CASH AND CASH
(13.4)
140.0
105.3
(63.4)
EQUIVALENTS

7

Other Selected Financial Information: EBITDA

Eutelsat S.A.
For the year ended
For the 6 months ended
30 June 2008
30 June 2009
31 December 2008
31 December 2009
(in millions Euros)

Revenues
879.1
941.9
464.2
508.8
Operating expenses(1)
(173.6)
(190.7)
(83.9)
(92.3)
EBITDA(2)
705.5
751.2
380.3
416.5
EBITDA margin (as a percentage of
80.2%
79.8%
81.9%
81.8%
revenues)

(1)
Operating expenses are defined as operating costs plus selling, general and administrative expenses.
(2)
EBITDA is defined as operating income before depreciation and amortisation and other operating revenue and expenses (impairment of
assets, dilution profits/losses, Insurance indemnities, etc.).
EBITDA is not a GAAP measure and as such it is not audited or reviewed by the auditors. EBITDA does not
constitute a measure of financial performance. It should not be compared to operating income, net income
or cash flow from operating activities. Nor should it be used as an indicator of profitability or liquidity.
Likewise, it should not be used as an indicator of past or future operating results. EBITDA is calculated
differently from one company to another, and accordingly the information given in this Prospectus about
EBITDA should not be compared to EBITDA information reported by other companies.
Order Backlog Evolution

Eutelsat S.A.
30 June 2008
31 December
30 June 2009
31 December 2009

2008

Value of contracts (in billions of
3.4
3.5
3.9
4.2
Euros)
Weighted remaining duration of
7.4
7.7
7.8
8.2
contracts
Portion
relating
to
Video
93%
92%
92%
93%
Applications
At 31 December 2009, the Group's order backlog totalled 4.2 billion Euros or more than 4.2 times annual
revenues, compared with 3.9 billion Euros at 30 June 2009.
8

RISK FACTORS
The following is a summary of certain aspects of the offering of the Bonds of which prospective investors
should be aware. Prior to making an investment decision, prospective investors should consider carefully all
of the information set out in this Prospectus, including in particular the risk factors detailed below. This
summary is not intended to be exhaustive and prospective investors should make their own independent
evaluations of all investment considerations and should also read the detailed information set out
elsewhere in this Prospectus.
Terms defined in the "Terms and Conditions of the Bonds" shall have the same meaning where used below.
The Issuer believes that the factors described below represent the principal risks inherent in investing in the
Bonds, but the inability of the Issuer to pay interest, principal or other amounts on or in connection with the
Bonds may occur for other reasons which may not be considered significant risks by the Issuer based on
information currently available to it or which it may not currently be able to anticipate. Additional risks or
uncertainties not known to the Issuer at the date of this Prospectus, or that the Issuer believes are
immaterial may also impact on the business operations of the Issuer. Prospective investors should also read
the detailed information set out elsewhere in this Prospectus and reach their own views prior to making any
investment decision.
1.
RISKS RELATING TO THE ISSUER
The risks described below are those identified by the Issuer that could have an adverse effect on
the Group's situation. Additional risks, which are either not currently known or not considered
likely to materialise, as at the date of this Prospectus may also exist, such additional risks could
materially and adversely affect the Group's business, financial condition or the results of its
operations. The occurrence of one or more of these risks could also have an adverse effect on the
Group's situation.
Risks inherent to business
The Group might not be able to meet its launch or activation timetables for its new satellites
The Group is planning to launch 4 new satellites (W3B, KA-SAT, W3C and ATLANTIC BIRDTM 7) in the
next 3 financial years. These satellites are intended to ensure the continuity of services provided by
certain existing satellites, increase resources and security in certain orbital positions and
strengthen the Group's service offering.
The Group may not be able to meet the planned timetable for the launch of these satellites.
In addition, the limited number of launch service operators reduces the Group's flexibility and
options to transfer planned launches from one provider to another in the event that a launch is
delayed or fails.
A significant delay in satellite construction, or a delay or failure in the launch of one of these
satellites, could impair the Group's ability to generate new sales opportunities, implement its
development strategy, meet its contractual service continuity commitments to customers or final
users, or meet its growth objectives. Any significant delay or failure in the launch of any of its
satellites could thus have a significant negative impact on the Group's business, financial situation,
results and objectives.
9

The Group's satellite deployment plan is dependent on several major suppliers
The number of constructors capable of designing and building satellites in compliance with the
technical specifications and quality demanded by the Group is limited, as is the number of agencies
capable of launching these satellites. The limited number of these suppliers could reduce the
Group's bargaining power and could increase the cost of implementing its programme within the
planned timeframe.
During the financial year ended 30 June 2009, the Group purchases from satellite manufacturers
and launch service providers totalled 341.6 million Euros. No individual supplier accounted for
more than 40% of this amount.
Satellite purchases and launch services, which at 30 June 2009 and at 30 June 2008 represented
respectively in the region of 78% and 87% of the Group's fixed asset purchases, mainly involve 2
satellites manufacturers (EADS Astrium and Thales Alenia Space) and 3 launch operators (Ariane,
Sea Launch and International Launch Services (ILS)).
The Group considers that it is not dependent on any suppliers other than satellite manufacturers
and launch operators.
The limited number of suppliers could have a significant negative impact on the Group's business,
financial situation and results.
The Group is also exposed to the risk that its suppliers may experience operational or financial
difficulties, or that they may become involved in insolvency proceedings or other litigation relating
to intellectual property rights.
Two launches associated with forthcoming satellite deployment programmes in 2009 and 2010,
concerning the W7 and KA-SAT satellites, were meant to be carried out by Sea Launch Limited
Partnership, which entered Chapter 11 bankruptcy protection under the US Bankruptcy Code on 22
June 2009. The purpose of Chapter 11 is to allow struggling companies to reorganise in order to
continue operating. The W7 satellite was however successfully launched in November 2009.
Total expenditure relating to these launch services and already paid by the Issuer to Sea Launch
totalled 79.9 million Euros at 31 December 2009.
Having been informed by Sea Launch that it would be unable to keep to the agreed schedule for
putting W7 in orbit, in September 2009 the Group exercised an option in a launch service contract
with ILS, allowing this satellite to be launched according to the schedule stated in its deployment
plan (see section "Recent developments" for more details). Discussions have started with Sea
Launch to reallocate the initially planned launch to a future satellite of the Group. Sea launch is
negotiating with its creditors and clients in relation with restructuring issues currently being
considered pursuant to Chapter 11 of the US Bankruptcy Code.
The Issuer believes that, at the date of this Prospectus, these discussions and the information
available since the close of the half year ending 31 December 2009 do not change the approach
adopted in Note 3 to the financial statements (see the Annex of this Prospectus) and that Sea
Launch should be in a position to comply with its contractual obligations vis-à-vis the Group
relating to the provision of launch services.
If Sea Launch is unable to fulfil its contractual obligations to the Group within the specified
timeframe, the Group would reallocate the satellites concerned to other service providers and, in
some cases, enter into new launch contracts. Such events could have a significant negative impact
on the Group's business, financial situation and results.
10