New Issue: Intelsat prices $640 million 10-year notes at par to yield 6 5/8%

By Paul A. Harris

Portland, Ore., Sept. 19 - Intelsat Jackson Holdings SA priced a $640 million issue of senior notes due Dec. 15, 2022 (Caa2/CCC+/) at par to yield 6 5/8% on Wednesday, according to a syndicate source.

The yield printed in the middle of the 6½% to 6¾% yield talk.

Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Barclays, Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. were the joint bookrunners for the quick-to-market deal.

The satellite services provider plans to use the proceeds to fund the tender offer for its $603.2 million of outstanding Intelsat Jackson notes due 2016, to redeem those notes not purchased in the tender and for general corporate purposes.

Issuer:	Intelsat Jackson Holdings SA
Amount:	$640 million
Maturity:	Dec. 15, 2022
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Barclays, Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc.
Co-managers:	UBS Investment Bank, RBC Capital Markets, HSBC
Coupon:	6 5/8%
Price:	Par
Yield:	6 5/8%
Spread:	495 bps
Call features:	Make-Whole call at Treasuries plus 50 bps until Dec. 15, 2017, then callable at 103.313, 102.208, 101.104, par on and after Dec. 15, 2020
Equity clawback:	35% at 106.625 until Dec. 15, 2015
Trade date:	Sept. 19
Settlement date:	Oct. 3
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC+
Distribution:	Rule 144A with registration rights
Price talk:	6½% to 6¾%
Marketing:	Quick to market

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