Inmarsat seeks to repurchase $287.7 million convertibles due 2017

By Susanna Moon

Chicago, Aug. 31 – Inmarsat plc said it will carry out a reverse bookbuilding to repurchase its outstanding $287.7 million of 1.75% convertible bonds due 2017.

Inmarsat is looking to repurchase the convertibles using proceeds of a new offering of $550 million convertible bonds due 2023 with a greenshoe of up to $50 million, according to a company announcement.

The cash payment would be $136,000 per convertible plus accrued interest to but excluding the settlement date of Sept. 12.

The repurchase is open only to non-U.S. persons under Regulation S.

Any bonds that are repurchased will be canceled.

Under the terms of the convertibles, if the conversion rights have been exercised for 85% or more of the outstanding bonds originally issued, the company may redeem the bonds in whole but not in part at their accreted principal amount plus accrued interest.

Remaining proceeds of the new issue will be used to bolster Inmarsat's financial position and to “support its strategy of continued investment in innovation and the delivery of global mobile satellite service solutions, where Inmarsat continues to see opportunities for sustained profitable growth,” according to the press release.

The company said it reserves the right not to proceed with the new issue and with the concurrent repurchase if the company has not received, at the closing of the reverse bookbuilding, offers for at least 50% of the outstanding bonds.

Inmarsat is a London-based satellite telecommunications company.

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