Intelsat greenshoe ups 5.75% convertible preferreds to $172.5 million

By Susanna Moon

Chicago, April 23 - Intelsat SA underwriters exercised the $22.5 million over-allotment option on the company's three-year series A mandatory convertible preferred shares Tuesday, bringing the total deal size to $172.5 million.

The company priced $150 million of the convertible preferreds at par of $50 on April 18 to yield 5.75% with an initial conversion premium of 22.5%, as previously reported.

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 was 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, which raised a total of $400 million, included 19,323,672 shares of common stock priced at $18.00 each, downsized from an initially talked 21,739,130 common shares, and a fully exercised greenshoe of 2,898,550 shares, 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."

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.

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