Intelsat subsidiary concludes tender for 9¼%, 6 7/8% senior notes

By Susanna Moon

Chicago, Oct. 15 - Intelsat SA announced that its subsidiary Intelsat Corp. completed the tender offers for its 9¼% senior notes due 2014 and its 6 7/8% senior secured debentures due 2028.

The tender offer expired at 11:59 p.m. ET on Oct. 14.

Intelsat received tenders of $546,286,000, or about 83%, of the 9¼% notes, unchanged as of the consent date, and $124,959,000, or 99.9%, of the 6 7/8% notes - up slightly from $124,859,000 of the notes at the early deadline.

As previously noted, the company will pay $1,035 per $1,000 principal amount of 9¼% notes, which includes a $30.00 consent payment for notes tendered by the consent time of 5 p.m. ET on Sept. 29.

Intelsat will pay $1,200 per 6 7/8% note, including a $40.00 consent payment for notes tendered by the consent time.

Investors will also receive accrued interest from the last interest payment date to but not including the purchase date.

Intelsat said on Sept. 30 that it received the necessary consents to amend the notes to eliminate substantially all of the restrictive covenants, certain events of default and other provisions, and entered into supplemental indentures.

The company launched the cash tender offer to purchase any and all of its $658.1 million of 9¼% notes and any and all of its $125 million of 6 7/8% notes on Sept. 16.

Wells Fargo Bank, NA is the trustee for the 9¼% notes and the Bank of New York Mellon Trust Co., NA is the trustee for the 6 7/8% notes.

Payment for notes tendered prior to the consent time and accepted for purchase was Sept. 30. Payment for notes tendered after the consent time but at or before the expiration time was expected to occur on Friday.

For the 9¼% notes, Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) was the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-4500 or 212 430-3774) was the information agent.

For the 6 7/8% notes, Deutsche Bank Securities Inc. (212 250-5655) was the dealer manager and solicitation agent. Global Bondholder Services was the information agent.

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

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