S&P rates Intelsat Jackson loans BB-

Standard & Poor's said it assigned its BB- issue-level rating and 1 recovery rating to Intelsat Jackson Holdings SA's proposed $1.75 billion senior secured term loan B-2 due 2019 and proposed $500 million revolving credit facility due 2017.

The 1 recovery rating indicates an expectation for very high (90% to 100%) recovery for lenders in the event of a payment default.

S&P said it expects the company to use net proceeds from the proposed term loan B-2 to refinance a portion of its existing senior secured term loan due 2018, of which approximately $3.2 billion was outstanding as of Sept. 30.

As a result, the proposed transaction will modestly extend debt maturities and reduce annual interest expense assuming lower interest rate spreads, the agency said.

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