Moody's rates Intelsat notes B3

Moody's Investors Service said it assigned a B3 (LGD 3, 33%) rating to Intelsat Jackson Holdings, SA new $900 million 10-year note issue. The new notes are guaranteed by Intelsat Jackson's wholly-owned subsidiary, Intelsat Subsidiary Holding Co., SA., and rank equally with other senior notes issued by Intelsat Jackson and guaranteed by Intelsat Subholdco.

The outlook is stable.

The company's corporate family rating was affirmed at Caa1, probability of default rating at Caa1, speculative grade liquidity rating at SGL-3 and senior unsecured regular bond/debenture rating at Caa3 (LGD 6, 95%)

Intelsat (Luxembourg) SA's senior unsecured regular bond/debenture was affirmed at Caa3 (LGD 5, 84%) and Intelsat Jackson Holdings SA's senior secured bank credit facility was affirmed at B3 (LGD 3, 33% from LGD 3, 34%), senior unsecured regular bond/debenture at B3 (LGD 3, 33% from LGD 3, 34%) and senior unsecured regular bond/debenture at Caa2 (LGD 4, 65%).

Intelsat Intermediate Holding Co. SA's senior unsecured regular bond/debenture was affirmed at Caa2 (LGD 4, 59% from LGD 4, 58%).

Intelsat Subsidiary Holding Co. SA's senior secured bank credit facility was affirmed at B1 (LGD 1, 4% from LGD 1, 5%), senior unsecured regular bond/debenture at B3 (LGD 3, 33%) from (LGD 3, 34%) and Intelsat Corp.'s senior secured bank credit facility at B1 (LGD 1, 4% from LGD 1, 5%) and senior unsecured regular bond/debenture at B3 (LGD 3, 33% from LGD 3, 34%).

Most of the new issue proceeds, $830 million, will be used to retire existing debt in the name of Intelsat Corp., Moody's said.

The balance will fund accrued interest, pay fees and expenses, and bolster consolidated liquidity, the agency said.

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