Intelsat offers new 8% notes due 2024 for 6 5/8% notes due 2022

By Susanna Moon

Chicago, Aug. 30 – Intelsat SA said its subsidiary Intelsat Jackson Holdings SA began a private exchange offer for its $141,798,000 principal amount of outstanding 6 5/8% senior notes due 2022.

In exchange, the company is offering newly issued 8% senior secured notes due 2024, according to a company announcement.

The total exchange value will be $705 par amount of new notes plus $120 in cash for each $1,000 principal amount of notes tendered for exchange by 11:59 p.m. ET on Sept. 12, the early tender date.

The exchange amount will be $705 par amount of new notes plus $100 in cash for each $1,000 principal amount of notes tendered for exchange after the early deadline.

The company also will pay accrued interest to but excluding the settlement date, which will be Sept. 15 for early tendered notes and Sept. 27 for remaining tenders.

The company also is soliciting consents to amend the notes indenture to eliminate substantially all of the restrictive covenants and events of default and to waive any defaults or events of default.

The consent payment will be $65 for each $1,000 principal amount.

Holders may tender their notes in the exchange without giving their consents in the solicitation, and a tender does not automatically constitute a delivery of consent. Also, holders may submit consents without tendering their notes for exchange, and submitting consents in the solicitation does not automatically constitute a tender in the exchange, the release noted.

The new notes being offered will be an add-on to Intelsat Jackson’s $1.25 billion principal amount of 8% senior secured notes due 2024.

The exchange will run until 11:59 p.m. ET on Sept. 26. The consent solicitation will end at 5 p.m. ET on Sept. 12.

Tendered notes may be withdrawn by the early tender deadline.

Intelsat Jackson said it will execute a supplemental indenture if it obtains consents from holders of at least a majority of the outstanding notes, voting as a single class.

On Aug. 29, holders who collectively held about $78.4 million principal amount, or 55.3%, of the 2022 notes entered into a support agreement with Intelsat Jackson to tender their notes for exchange and give consents.

The exchange is contingent upon at least a majority of the outstanding notes being tendered for exchange and receipt of the needed majority of consents in the solicitation.

The exchange offer is being made, and the new 2024 notes will be issued, only to qualified institutional buyers under Rule 144A, those who are institutional accredited investors under Regulation D or those who are non-U.S. persons under Regulation S.

Global Bondholder Services Corp. (212 430-3774, 866 470-4200 or http://gbsc-usa.com/eligibility/intelsat) is the information agent.

Intelsat is a Luxembourg-based communications satellite company.

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