By Paul A. Harris
St. Louis, Oct. 14 - Intelsat Jackson Holdings, Ltd. priced a $500 million issue of 8½% 10-year senior notes (B3/B+/) at 99.166 to yield 8 5/8% on Wednesday, according to an informed source.
The yield printed tight to the 8¾% area yield talk. The reoffer price came in line with the discount talk of approximately 1 point.
Bank of America Merrill Lynch, Barclays Capital Inc., Credit Suisse Securities and Morgan Stanley & Co. Inc. were joint bookrunners for the quick-to-market deal.
Co-managers were Goldman Sachs & Co., Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc.
Proceeds will be used to purchase and cancel about $400 million of Intelsat Bermuda's outstanding pay-in-kind notes and for general corporate purposes.
The issuer is a Washington, D.C.-based fixed satellite services provider.
| Issuer: | Intelsat Jackson Holdings, Ltd.
|
| Face amount: | $500 million
|
| Proceeds: | $495.83 million
|
| Maturity: | Nov. 1, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Credit Suisse Securities, Morgan Stanley & Co. Inc.
|
| Co-managers: | Goldman Sachs & Co., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc.
|
| Coupon: | 8½%
|
| Price: | 99.166
|
| Yield: | 8 5/8%
|
| Spread: | 521 bps
|
| Call protection: | Make-whole at Treasuries plus 50 bps until Nov. 1, 2014, then callable at a premium
|
| Equity clawback: | 35% at 108.50 until Nov. 1, 2012
|
| Trade date: | Oct. 14
|
| Settlement date: | Oct. 20
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A
|
| Price talk: | 8¾% area with about 1 point of OID
|
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