Avanti Comms raises funds for new satellite

12th Jul 2010 16:33

Satellite operator Avanti Communications has raised in the region of £70m through a placing of 16.28m shares at 430p each.The newly issued shares represent around 23.7% of Avanti's existing ordinary share capital.Funds from the placing will be used to repay the fixed term facilities of a principal amount of £32m (£53m including accrued interest and an early repayment discount) borrowed in order to finance HYLAS 1, Avanti's first satellite.The remainder of the funds will enable Avanti to initiate the procurement of a third satellite to take advantage of possible new business development opportunities. It will also provide additional resources for the company to re-domicile the HYLAS 2 assets offshore, to better manage its long term operations closer to its anticipated customers and core gateway infrastructure, whilst also availing itself of efficient tax planning opportunities which will generate significant long term savings.The company added that trading in the year to 30 June has been satisfactory and in line with market expectations.