Intelsat plans $150 million mandatory convertible preferreds to yield 5.75%-6.25%, up 17.5%-22.5%

By Rebecca Melvin

New York, April 2 - Intelsat Global Holdings SA launched an offering of $150 million of three-year series A mandatory convertible preferred shares, or 3 million shares at $50 par, that were talked to yield 5.75% to 6.25% with an initial conversion premium of 17.5% to 22.5%, according to a syndicate source.

The junior non-voting mandatory preferreds are coming concurrently with Intelsat's proposed initial public offering scheduled for April 17. The company is planning to price 21,739,130 common shares in the IPO.

The offerings are being made under a registration statement on Form F-1 with the Securities and Exchange Commission.

There is a greenshoe for an additional 450,000 mandatories and 3,260,869 additional common shares.

The mandatories will be listed on the New York Stock Exchange under the symbol "I PR A," and the common shares will be listed under the symbol "I."

Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and BofA Merrill Lynch are acting as joint bookrunning managers. Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Nomura Securities International, Inc. and UBS Securities LLC are bookrunners.

Evercore Group LLC, HSBC Securities (USA) Inc., RBC Capital Markets, LLC, LionTree Advisors LLC and Raymond James & Associates, Inc. are acting as co-managers for the proposed offerings.

Intelsat is a Pembroke, Bermuda-based fixed satellite services provider.

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