New York, June 30 – Intelsat SA said its Intelsat Jackson Holdings SA subsidiary has completed the placement of $490 million of 9˝% senior secured notes due 2022 at a price of 98% of par.
The notes will be sold via a purchase agreement with institutional investors, according to a news release.
Guggenheim Securities, LLC is placement agent, a market source said.
Proceeds from the new notes will be used to fund the company’s previously announced tender offers.
Intelsat also announced on Thursday that Intelsat Jackson again amended and extended its tender offer to purchase three series of notes.
This time, Intelsat Jackson also reduced the maximum payment amount, excluding accrued interest, to $463 million from $625 million.
The tender offer will now continue until 11:59 p.m. ET on July 14, which also will be the revised early tender date. The offers began on May 12 and have been extended multiple times.
On Monday Intelsat disclosed that it had been in talks with some investment funds about a proposed issuance of secured notes by Intelsat Jackson but had not at that point reached agreement.
In connection with a potential financing, the company said it made an indicative non-binding proposal on terms substantially similar to those governing Intelsat Jackson’s 8% senior secured notes due 2024, but with a market-based yield and modified call features, reflective of current risk considerations.
Further details on the new notes were not immediately available.
Intelsat SA is a Luxembourg-based provider of satellite services that operates out of McLean, Va.
| Issuer: | Intelsat Jackson Holdings SA (Intelsat SA)
|
| Issue: | Senior secured notes
|
| Amount: | $490 million
|
| Maturity: | 2022
|
| Coupon: | 9˝%
|
| Price: | 98
|
| Distribution: | Private placement
|
| Placement agent: | Guggenheim Securities, LLC
|
| Pricing date: | June 30
|
| Settlement date: | June 30
|
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