Freshfields advises SES on issuance of €650 million guaranteed subordinated perpetual with automatic conversion events (SPACE) hybrid bond

Global law firm Freshfields has advised SES S.A. on its €650 million SPACE hybrid bond issuance.

The deal was upsized from an expected €500 million following strong investor demand, with the orderbook exceeding €3.2 billion. The guaranteed issuance is a first-of-its-kind structure in the European hybrid bond market and only the second bond to qualify for Moody’s recently established  speculative-grade hybrid category, with the notes expected to receive 100% equity credit. It supports SES’s capital structure and deleveraging ambitions.

Proceeds will be used for general corporate purposes, including refinancing existing hybrid debt. The notes are perpetual with a non-call period of 5.25 years.

The Freshfields team was led by partner Peter Allen with support from senior associate Greg Garfield and associate Magdalen Olonilua.