Eutelsat - comment

The company announces the success of its rights issue, the second leg of its capital raising program. Over the course of Q4, therefore, Eutelsat will pick up €1.3bn of fresh equity. As per our last mail, this should constitute the peak for all instruments, except the short end and perhaps the expensive 29s that should be refinanced next year, once the pretty audited results are published. Eutelsat will remain a strategic asset, but CapEx will front-run revenue growth and suck the cash out at a breathtaking pace. Bonds remain only indirectly exposed to the LEO constellation.