By Paul A. Harris
St. Louis, Feb. 3 - Zeus Special Subsidiary, an intermediate holding company of Intelsat, sold $478.7 million of 10-year senior discount notes (B3/B) at 63.787 to yield 9¼%, according to a market source.
Price talk was 9¼% to 9½%.
The sale generated $305.35 million of proceeds.
Deutsche Bank Securities ran the books for the Rule 144A issue.
The notes have a five-year zero coupon and will rank subordinate to existing Intelsat (Bermuda) Ltd. debt and senior to Intelsat Ltd. debt.
Proceeds will be used to fund the repurchase of certain preferred shares held by the shareholders of Intelsat's parent, Zeus Holdings Ltd.
Intelsat is a Pembroke, Bermuda, satellite communications company.
| Issuer: | Zeus Special Subsidiary (Intelsat Ltd.)
|
| Face amount: | $478.7 million
|
| Proceeds: | $305.35 million
|
| Maturity: | Feb. 1, 2015
|
| Security description: | Senior discount notes
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| Bookrunner: | Deutsche Bank Securities
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| Coupon: | 0% for five years
|
| Price: | 63.787
|
| Yield: | 9¼%
|
| Spread: | 509 basis points
|
| Call protection: | Five years
|
| Trade date: | Feb. 3
|
| Settlement date: | Feb. 11
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Price talk: | 9¼%-9½%
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