By Rebecca Melvin
New York, April 18 - Intelsat SA priced $150 million of three-year series A mandatory convertible preferred shares at par of $50 to yield 5.75% with an initial conversion premium of 22.5%, according to a prospectus.
The junior non-voting mandatory preferreds priced at the rich end of talk, which was for a dividend of 5.75% to 6.25% and a 17.5% to 22.5% premium.
There is a $22.5 million greenshoe for an additional 450,000 preferred shares on top of the 3-million-share base deal, and it priced concurrently with Intelsat's initial public offering of common shares.
The IPO raised $347.8 million, or 19,323,672 shares at $18.00 each, which was downsized from an initially talked 21,739,130 common shares. There is a greenshoe of 2,898,550 shares of common stock, which was downsized from an initially talked 3,260,869 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."
Closing is expected to take place April 23.
Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and BofA Merrill Lynch acted as joint bookrunning managers. Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Nomura Securities International, Inc. and UBS Securities LLC were bookrunners.
Intelsat, which was formerly known as Intelsat Global Holdings SA, is a Luxembourg-based fixed satellite services provider.
| Issuer: | Intelsat SA
|
| Issue: | Class A mandatory convertible preferreds
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | May 1, 2016
|
| Concurrent offering: | Initial public offering of common shares
|
| Bookrunning managers: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch
|
| Bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Nomura Securities International, Inc., UBS Securities LLC
|
| Co-managers: | Evercore Group LLC, HSBC Securities (USA) Inc., RBC Capital Markets, LLC, LionTree Advisors LLC, Raymond James & Associates, Inc.
|
| Dividend: | 5.75%
|
| Liquidation preference: | $50.00
|
| Threshold appreciation price: | $22.05
|
| Threshold appreciation premium: 22.5%
|
| Maximum conversion rate: | 2.7778 shares
|
| Minimum conversion rate: | 2.2676
|
| Takeover protection: | Yes
|
| Price talk: | 5.75%-6.25%, up 17.5%-22.5%
|
| Pricing date: | April 17
|
| Settlement date: | April 23
|
| Preferred stock symbol: | NYSE: I PR A
|
| Stock symbol: | NYSE: I
|
| IPO stock price: | $18.00
|
| Distribution: | Registered
|
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