SINGAPORE - In-flight caterer and ground handler Sats announced on Nov 19 that it has established a US$3 billion (S$4.03 billion) multi-currency debt issuance programme.

The company said that the net proceeds from the programme will be used to refinance existing borrowings, finance potential acquisition and investment opportunities as well as working capital and capital expenditure requirements and other general corporate purposes.

Under the programme, DBS Bank and OCBC Bank will act as joint arrangers and dealers, with the latter acting as the sole rating adviser for the credit rating exercise.

In a bourse filing, the company said it could issue notes and perpetual securities denominated in any currency. Each series or tranche of notes may also be issued in different amounts and tenors, and may bear interest at a fixed rate, floating rate, or zero coupon.

The notes issued as part of the programme will constitute direct, unconditional, unsubordinated and unsecured obligations of the company.

Meanwhile, the perpetual securities may bear fixed or floating rates of distribution and may have distributions deferred by the company if the pricing supplement provides for this.

Sats also noted that Moody’s has assigned the company with an A3 issuer rating and a baa3 baseline credit assessment. A provisional (P)A3 rating has also been assigned to the programme and is applicable to only the issuance of senior unsecured notes from the programme.

Sats shares closed 1.1 per cent, or three cents, higher at $2.74 on Nov 20. THE BUSINESS TIMES