Intelsat extends offer for notes, to pay early premium on all tenders

New York, June 9 – Intelsat SA’s indirect wholly owned subsidiary, Intelsat Jackson Holdings SA, extended the expiration date of its tender offer to purchase three series of notes for up to $625 million in cash.

The issuer also said that it will pay the early tender premium for all accepted tenders.

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, according to a news release. 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.

The tender will now expire at 11:59 p.m. ET on June 22, extended from 11:59 p.m. ET on June 14.

On May 18 the tender offer was extended from 11:59 p.m. ET on June 9. The offers began on May 12.

The early tender deadline will now match the final expiration. Previously it 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.

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

Also on May 18, Intelsat reduced pricing in the tender offer. Following 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 5˝% 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 7˝% senior notes due 2021 with a total price of $705.00 per $1,000 principal amount, revised from $775.00.

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.

As of 5 p.m. ET on June 8, holders had tendered $581,593,000, or 71.3%, of the 6 5/8% notes, $1,173,769,000, or 58.7%, of the 5˝% notes and $275,283,000, or 23.9%, of the 7˝% notes.

Intelsat said Thursday that the tender remains subject to the satisfaction or waiver of a financing condition.

Intelsat’s current intention is to issue long-term senior secured debt securities but it may choose alternative debt financing, according to the news release.

For the 6 5/8% notes, the outstanding amount excludes about $460 million principal amount repurchased by the company in 2016 and held in treasury, which Intelsat Jackson plans to submit for cancellation, according to a company announcement.

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.

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