Moody's cuts Intelsat, rates loans Ba3, notes B1

Moody's Investors Service said it downgraded Intelsat Ltd.'s existing ratings and assigned new ratings to its intermediate holding company, Intelsat (Bermuda) Ltd. as a result of the expected closing and funding of Zeus Holdings Ltd.'s leveraged buyout of Intelsat. The outlook is stable.

Moody's downgraded Intelsat's senior implied rating to B1 from Ba3, unsecured issuer rating to B3 from Ba3 and $400 million 5¼% global notes due 2008, $600 million 7 5/8% senior notes due 2012 and $700 million 6½% global notes due 2013 to B3 from Ba3.

Moody's assigned a Ba3 rating to Intelsat (Bermuda)'s $300 million senior secured revolving credit facility due 2011 and $500 million senior secured term loan B due 2011 and B1 to its senior floating-rate notes due 2012, senior fixed-rate notes due 2013 and senior fixed-rate notes due 2015.

The downgrade reflects not only the increased leverage of the company as a whole, but also significant structural subordination resulting from the new financing.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.