New Issue: Intelsat Jackson prices $2.64 billion senior notes in two tranches

By Paul A. Harris

Portland, Ore., May 21 - Intelsat Jackson Holdings SA priced $2,635,000,000 of senior notes in two tranches in a quick-to-market transaction on Tuesday, according to a syndicate source.

The deal included a $2 billion issue of 10-year notes (B3/B/), which priced at par to yield 5½%. The yield printed at the wide end of the 5¼% to 5½% yield talk.

In addition the fixed satellite services provider priced a $635 million tack-on to its 6 5/8% senior notes due Dec. 15, 2022 (Caa1/CCC+/) at 106.25 to yield 5.596%. The reoffer price came in the middle of the 106 to 106.5 price talk.

Credit Suisse Securities (USA) LLC, Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. and Deutsche Bank Securities Inc. were the joint bookrunners.

Proceeds will be used to refinance the Intelsat 11¼% Luxembourg notes due 2017 and the Intelsat Jackson unsecured term loans due 2014.

Issuer:	Intelsat Jackson Holdings SA
Face amount:	$2,635,000,000
Proceeds:	$2,675,000,000
Bookrunners:	Credit Suisse Securities (USA) LLC, Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc.
Co-managers:	UBS Securities LLC, HSBC Securities (USA) Inc., RBC Capital Markets LLC, LionTree Advisors LLC
Trade date:	May 21
Settlement date:	June 5
Distribution:	Rule 144A and Regulation S with registration rights
Marketing:	Quick to market
New 10-year notes
Amount:	$2 billion
Maturity:	Aug. 1, 2023
Securities:	Senior notes
Coupon:	5½%
Price:	Par
Yield:	5½%
Spread:	364 bps
First call:	Aug. 1, 2018 at 102.75
Equity clawback:	40% at 105.5 until Aug. 1, 2016
Ratings:	Moody's: B3
	Standard & Poor's: B
Price talk:	5¼% to 5½%
Tack-on notes due 2022
Face amount:	$635 million
Proceeds:	$674.7 billion
Maturity:	Dec. 15, 2022
Security description:	Tack-on to 6 5/8% senior notes due Dec. 15, 2022
Coupon:	6 5/8%
Price:	106.25
Yield to worst:	5.596%
Spread:	419 bps
First call:	Dec. 15, 2017 at 103.313
Equity clawback:	35% at 106.25 until Dec. 15, 2015
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Price talk:	106 to 106.5
Original issue:	$640 million issue priced at par on Sept. 19, 2012
Total issue size:	$1,275,000,000

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