Company: SGBAF
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0001193125-25-120606
Chunk: 251

Company: SES S.A.
Filing Date: 2025-05-15
Form: 424B3
Chunk 251
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’s cost of satellite construction includes an element of deferred consideration to satellite manufacturers referred to as satellite performance incentives. Intelsat is contractually obligated to make these payments over the lives of the satellites, provided the satellites continue to operate in accordance with contractual specifications. Intelsat capitalizes the present value of these payments as part of the cost of the satellites and record a corresponding liability to the satellite manufacturers. This asset is amortized over the useful lives of the satellites. Interest expense is recognized on the deferred financing and the liability is reduced as the payments are made. Intelsat’s total satellite performance incentive payment liability as of December 31, 2022 and 2023 was $98.1 million and $107.1 million, respectively. 205

Capital Expenditures Intelsat’s capital expenditures depend on its business strategies and reflect its commercial responses to opportunities and trends in its industry. Intelsat’s actual capital expenditures may differ from its expected capital expenditures if, among other things, it enters into any currently unplanned strategic transactions. Levels of capital spending from one year to the next are also influenced by the nature of the satellite life cycle and by the capital-intensive nature of the satellite industry. For example, Intelsat incurs significant capital expenditures during the years in which satellites are under construction. Intelsat typically procures a new satellite within a timeframe that would allow the satellite to be deployed at least one year prior to the end of the service life of the satellite to be replaced. As a result, Intelsat frequently experiences significant variances in its capital expenditures from year to year. Payments for satellites and other property and equipment during the year ended December 31, 2023 were $584.3 million. On July 12, 2023, Intelsat License filed its Phase II Certification of Accelerated Relocation, indicating completion of required clearing activities to satisfy the December 5, 2023 accelerated clearing deadline. No challenges to the certification were made and, under the rules established pursuant to the FCC Final Order, on August 11, 2023, the certification was deemed valid and Intelsat submitted its invoice for the Phase II ARP of approximately $3.7 billion. As of October 19, 2023, the entire Phase II ARP proceeds of $3.7 billion were received (see Liquidity and Capital Resources— Overview). Subsequently, a portion of these proceeds was used to repay the 2029 Term Loans in full. Intelsat intends to fund its capital expenditure