Avanti to raise £86m at 400p

21st Dec 2009 07:09

Satellite operator Avanti Communications is to raise £86m in new equity and has agreed £194m of new borrowings to fund the launch of its second wireless broadband satellite, HYLAS 2.The group's fist satellite, HYLAS 1, is scheduled to launch in the second half of 2010. It will cover Europe, while HYLAS 2 will extend coverage in Eastern Europe, the Middle East and parts of Eastern and Southern Africa.Cenkos will place 21.5m new Avanti shares at 400p each. The new debt facility will bear an aggregate annualised interest rate including upfront fees and recurring annual rates of below 6%."HYLAS 1 is filled. HYLAS 2 is a much larger satellite and therefore greatly increases our revenue and profit potential. With equity dilution of less than 50%, we gain additional satellite revenue generating capacity of 275%," chief executive David Williams said.