Moody’s gives Intelsat Jackson notes B1

Moody's Investors Service said it assigned a B1 rating to Intelsat Jackson Holdings SA's $490 million senior secured notes and, as part of the same rating action, affirmed Intelsat SA's Caa2 corporate family rating and Caa3-PD/LD probability of default rating.

With Intelsat Jackson's 6 5/8% notes due 2022 having recently been guaranteed, the agency upgraded their rating to Caa2 from Caa3.

All other debt instrument ratings in the corporate family were affirmed. Intelsat's speculative grade liquidity rating was also affirmed, at SGL-3 (adequate liquidity), and its outlook was maintained at negative.

The action was prompted by Intelsat arranging funding, by way of Intelsat Jackson's new senior secured notes, for a tender offer by which existing notes are repurchased at a discount to par, Moody’s said.

The transaction is the most recent of several steps by which Intelsat is partially recapitalizing and, in the aggregate, the agency views the current sequence of transactions, which it believes will be completed within about 60-90 days, as comprising a distressed exchange.

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