I will believe it when I see it but just a heads up on todays developments.
US Ex-Im ups finance for Jabiru satellite 29th. January 2014
US Export Bank has announced details for a NEW TERM LOAN towards the Jabiru satellite project I Australia.
US Export Import Bank [US Ex-Im] ha agreed terms surrounding the latest loan to Newsat Ltd which will contribute to the construction and operation of the Jabiru satellite project in central Australia.
The export credit agency will provide the borrower with guarantees for working capital loans that will initiate financing for the cross border sale of goods and services between Australia and US based exporters.
US will provide credit insurance on the transaction, which will protect US exporters against the risk of non-payment y foreign buyers for commercial and political reasons.
Valued at $280 million the loan will be delivered in one tranche with a maturity of 8.5 years according to a source close to the deal. He adds that binding pre-launch contracts are currently valued at $644 million.
Newsat Ltd first approached ExIm and Coface in 2012 for project finance. US ExIm gave preliminary approval to the borrower in 2012, based on Newsats ability to raise $200 million in equity, funding the remainder of the project.
The Jabiru satellite is projected to launch and begin operations in 2015”
To me it this article raises a lot of questions [where are Coface?, why did we need another $280mill from ExIm?, why would ExIm need to guarantee its own money against default?, etc.] but one thing I think it really does answer is that we are now over the uncertainty and on our way.
ExIm wouldn't stump up yet an extra $280mill unless they were 110% committed to our project.
That in itself gives me the confidence that it it is NOW A DONE DEAL.
IMHO we are on our way at last.
If you aren't on board don't wait too long.
NWT Price at posting:
46.5¢ Sentiment: Hold Disclosure: Held
