O3b raises USD 137 mln for additional satellites

Satellite company O3b Networks has raised USD 137 million for the construction of four additional satellites. The additional spacecraft, to be built by Thales Alenia Space and set to launch in 2014, will double the capacity of O3b Networks' initial fleet of eight medium earth orbit satellites, which are scheduled to be launched in early 2013. The expansion of the fleet from eight to twelve satellites will increase the company's throughput by over 90 percent through a combination of the additional beams deployed and the enhanced link efficiency that a constellation of satellites can deliver. The company has already sold a little over a third of its capacity on a global basis with the contracted backlog standing at over USD 600 million. New equity funds were raised from certain of O3b's original investors who were joined in this round by Luxembourgish investment company Luxempart. The financing also included the expansion of the Coface-backed senior debt facility of an additional USD 85 million provided by HSBC, ING, CA-CIB and Dexia. O3b's satellites will be placed into orbit approximately 8,000 km from earth, four times closer than geo-stationary satellites, speeding up internet connections through its low latency.