Eutelsat Communications signed a facilities agreement for a 1.9 billion euro ($2.4 billion) loan at part of the company’s debt refinancing plans, Eutelsat announced June 8.

The proceeds of the refinancing will be used to repay senior debt of 1.6 billion euros ($2 billion) held by Satbirds Finance Sarl, a Luxembourg-based intermediate holding company between Eutelsat Communications and Eutelsat SA, and to increase the financial flexibility of the Eutelsat Group. The loan is the first milestone in a plan, which will lead to direct ownership of Eutelsat SA by Eutelsat Communications by fiscal year 2007-2008.

The loan was arranged and underwritten by Banc of America Securities Ltd., BNP Paribas, Lloyds TSB Bank plc, and The Royal Bank of Scotland plc.