Boeing, New Skies restructure satellite deal
Posted: Wed, Feb 2, 2005, 7:39 AM ET (1239 GMT)
Boeing Satellite Systems (BSS) and New Skies Satellites (NSS) have restructured a contract for a communications satellite that will allow NSS to recoup most of the money paid for the satellite to date in exchange for a series of installment payments. Under the agreement, reported Tuesday by Space News and revealed in SEC documents filed last week, BSS will refund the $168 million NSS had paid for the NSS-8 satellite to date, with $30 million of that to be held in an escrow account. In exchange, NSS will pay $16.7 million a year for 15 years after the satellite is launched, assuming the launch is successful and the satellite operates as desired. NSS will use the refunded payments for debt service and a dividend in advance of a public offering of stock. NSS had threatened to cancel the NSS-8 contract because of production delays and demand a complete refund. NSS-8 is currently scheduled for launch in early 2006 by Sea Launch; it will serve the Indian Ocean region.
Boeing Satellite Systems (BSS) and New Skies Satellites (NSS) have restructured a contract for a communications satellite that will allow NSS to recoup most of the money paid for the satellite to date in exchange for a series of installment payments. Under the agreement, reported Tuesday by Space News and revealed in SEC documents filed last week, BSS will refund the $168 million NSS had paid for the NSS-8 satellite to date, with $30 million of that to be held in an escrow account. In exchange, NSS will pay $16.7 million a year for 15 years after the satellite is launched, assuming the launch is successful and the satellite operates as desired. NSS will use the refunded payments for debt service and a dividend in advance of a public offering of stock. NSS had threatened to cancel the NSS-8 contract because of production delays and demand a complete refund. NSS-8 is currently scheduled for launch in early 2006 by Sea Launch; it will serve the Indian Ocean region.
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