S&P rates Intelsat Jackson loans BB-

Standard & Poor's said it assigned a BB- rating to Intelsat Jackson Holdings SA's proposed $2.85 billion senior secured credit facility due 2018, which will consist of a $2.35 billion term loan B and a $500 million revolving credit facility which is expected to be undrawn at closing.

The 1 recovery rating indicates expectations for 90% to 100% recovery.

S&P affirmed the B corporate credit rating.

The outlook is stable.

Proceeds will be used to refinance substantially all of the outstanding debt at Intelsat Corp. and the senior secured credit facility at Intelsat Sub Holdco. This financing is part of parent Intelsat Global SA's reorganization of its capital structure.

"The ratings on Luxembourg-based Intelsat reflect a highly leveraged financial profile that allows for limited financial flexibility over the next few years and that eclipses the attractive business characteristics," S&P analyst Naveen Sarma said in a statement.

The business risk profile is considered to be strong, reflecting the company's global scale, strong geographic diversification and a revenue backlog that provides for significant cash flow visibility, the agency said.

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