2 March 2009

Freshfields advises lenders on US$1.2bn financing of UAE satellite communications project

International law firm Freshfields Bruckhaus Deringer has advised a consortium of 14 international and regional banks on the US$1.2 billion non-recourse project financing for the delivery of secure satellite communications capacity and associated services to the United Arab Emirates Armed Forces.

Under the facilities, which reached financial close today after successfully satisfying all conditions, the Lenders will provide senior debt comprising a US$1.02 billion term loan facility, a US$100 million standby term loan facility and a US$80 million debt service reserve letter of credit facility.

The financing will enable the delivery of communication services to the UAE Armed Forces by the Borrower, Al Yah Advanced Satellite Communications Services PJSC (YahSat), through the use of two geostationary satellites and related ground infrastructure. YahSat is the UAE’s first nationally-owned satellite operator and wholly-owned subsidiary of Mubadala Development Company (Mubadala).

Freshfields finance partner Nick Bliss, co-leader of the firm’s Infrastructure and Transport Group, comments: “This complex financing has been agreed in challenging debt market conditions, reflecting the strength of various participants and the project. It has adapted and developed some of the principles seen in the Skynet 5 UK MoD milsatcom financing. YahSat has taken the next step by providing a commercial communications service as well as a military one.”

The Freshfields team was led by Nick Bliss, and included senior associates Don Stokes and William Coleman (Dubai office), associates Imtiaz Chowdhury and Rachel Quigley and counsel Glen Kelley, who is based in the Washington DC office.

Notes to editors

Mubadala is a business development and investment company headquartered in Abu Dhabi, which manages a multi-billion dollar portfolio of local, regional and international investments, projects and initiatives. Mubadala invests for the long term as active and diligent partners across a number of different sectors, including aerospace, technology, energy, industry, healthcare, infrastructure, real estate, hospitality and services.

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