Natixis Awarded Exclusive Equity Advisory and Exclusive Debt Advisory Roles for Ocean Networks' Infrastructure Project

Ocean Networks has appointed Natixis to act as Exclusive Equity Advisor and Exclusive Debt Advisor in relation to the SAPL project. Natixis will assist Ocean Networks in raising equity from institutional and infrastructure investors as well as senior secured debt from commercial banks.

Jean Pierre Geremy, Global Head of Telecom, Structured & Asset Finance at Natixis, said, “We are delighted to work with Ocean Networks on its submarine cable system, which will link and strengthen communications between the South Pacific, South and North America. Natixis has international expertise and significant experience in telecom infrastructure and project financing, and we are excited to contribute to this project in our role as Exclusive Equity Advisor and Exclusive Debt Advisor.”

The project is expected to be financed under a traditional project finance structure, and project debt may be provided with export credit agency backing and/or development bank support in light of significant institutional interest in the project. It is estimated that the SAPL project will be fully funded in less than 12 months.

The strategic SAPL system will fill a requirement for the emerging markets of Central and South America by providing low latency connectivity to the NAP of the Americas in Miami (Florida, USA), the Asia Pacific region, Australia and New Zealand via Hawaii. Hawaii is a mid-Pacific hub, or interconnect point, for many submarine cable systems. The SAPL system also offers a diverse route between trans-Pacific destinations and the NAP of the Americas (all existing trans-Pacific systems currently land on the West Coast of the United States).

SAPL will consist of 3 fiber pairs between Panama and Hawaii, 3 fiber pairs between Panama and Chile and 6 fiber pairs between Panama and Florida. The initial design capacity of the system is 10 terabits per second (Tbps) per fiber pair. The SAPL system is the only regional system that can offer full fiber pair indefeasible rights of use contracts (IRUs).

Ocean Networks expects the SAPL subsea cable system to achieve ready for service date in early 2018.

Scott Schwertfager, CEO of Ocean Networks, states, “We are extremely pleased to have contracted Natixis as our Exclusive Equity and Debt Advisor. Natixis has the proven experience and global reach to help us finance the SAPL system and maintain our ready for service date. Natixis recognized the importance of the SAPL system for the emerging Central and South American markets and their requirement for trans-Pacific connectivity and low latency connectivity to the USA.”