Intelsat extends tender until next Wednesday; offer oversubscribed

By Susanna Moon

Chicago, June 23 – Intelsat SA’s indirect wholly owned subsidiary, Intelsat Jackson Holdings SA, again extended its tender offer to purchase three series of notes for up to $625 million in cash.

The tender will now run until 5 p.m. ET on June 29, extended from 11:59 p.m. ET on June 22 and, before that, from June 14 and June 9. The offers began on May 12. Settlement is now expected to occur on June 30.

As announced on May 12, the company is offering to purchase notes from the three series for up to $625 million in cash.

As of the previous expiration, the tender offers were oversubscribed with about $2.1 billion principal amount, or 52.9%, of the outstanding securities tendered, according to a company announcement.

The tender remains subject to the satisfaction or waiver of a financing condition and Intelsat intends to issue long-term senior secured debt securities but may choose alternative debt financing, as previously noted.

Intelsat reduced pricing in the tender offer on May 18. After the change, Intelsat is tendering for its notes as follows, with the securities listed in order of priority acceptance level:

• $815,252,000 of outstanding 6 5/8% senior notes due 2022 with a total price of $687.50 per $1,000 principal amount, down from $740.00;

• $2 billion of outstanding 5½% senior notes due 2023 with a total price of $677.50 per $1,000 principal amount, down from $730.00; and

• $1.15 billion of outstanding 7½% senior notes due 2021 with a total price of $705.00 per $1,000 principal amount, revised from $775.00.

As of 5 p.m. on June 22, investors had tendered about $590,746,000 principal amount, or 72.5%, of the 6 5/8% notes; $1,180,350,000 principal amount, or 59%, of the 5½% notes; and $325.83 million principal amount, or 28.3%, of the 7½% notes.

That compares with tenders for $581,593,000, or 71.3%, of the 6 5/8% notes, $1,173,769,000, or 58.7%, of the 5½% notes and $275,283,000, or 23.9%, of the 7½% notes.

As of 5 p.m. ET on June 8, holders had tendered $2 billion of the notes, or 51.2% of the outstanding principal amount. That response was up from $1,904,000,000 of the notes, or 48%, as of the previous early tender deadline, 11:59 p.m. ET on May 31.

As announced June 9, the early tender deadline will coincide with the final expiration, and the issuer will pay the early tender premium for all accepted tenders. Before the change, the early deadline was 5 p.m. ET on June 8 after being extended on June 1. Before that it had been extended to 5 p.m. ET on May 31 from May 25.

Originally, the total payment included an early tender premium of $20.00 for each $1,000 principal amount of notes tendered by the early deadline, but the full amount will now be paid to all who participate.

Guggenheim Securities, LLC (212 823-6688 or Robert.Ramirez@GuggenheimPartners.com) is the dealer manager. Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) is the information and depositary agent.

Intelsat Jackson is a subsidiary of Intelsat Luxembourg. Both are subsidiaries of Intelsat SA, a Luxembourg-based provider of satellite services that operates out of McLean, Va.

© 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.