Intelsat extends $625 million tender for three notes, trims pricing

By Susanna Moon

Chicago, May 18 – Intelsat SA’s indirect wholly owned subsidiary, Intelsat Jackson Holdings SA, reduced pricing in the tender offers to purchase three series of its notes for up to $625 million in cash, according to a 6-K filing with the Securities and Exchange Commission.

The total purchase price for each $1,000 principal amount have been cut back as follows, with the notes listed in order of priority acceptance level:

• $815,252,000 of outstanding 6 5/8% senior notes due 2022 with a total price of $687.50, down from $740.00;

• $2 billion of outstanding 5½% senior notes due 2023 with a total price of $677.50, down from $730.00; and

• $1.15 billion of outstanding 7½% senior notes due 2021 with a total price of $705.00, revised from $775.00.

As previously announced, the total payment includes an early tender premium of $20.00 for each $1,000 principal amount of notes tendered by the early deadline.

The tender offers also have been extended until 11:59 p.m. ET on June 14 from 11:59 p.m. ET on June 9. The offers began on May 12.

The early tender deadline is now 5 p.m. ET on May 31, pushed back from 5 p.m. ET on May 25.

Holders who tender after the early deadline will receive the total amount less the early premium.

The company also will pay accrued interest up to but excluding the settlement date, which is now expected to be June 1 for early tendered notes and June 15 for all other tenders.

For the 6 5/8% notes, the outstanding amount excludes about $460 million principal amount repurchased by the company in 2016 and held in treasury, which Intelsat Jackson plans to submit for cancellation, according to a company announcement.

The offer also contains a financing condition.

Intelsat Jackson also holds a right to increase or decrease the maximum payment amount, the release noted.

Guggenheim Securities, LLC (212 823-6688 or Robert.Ramirez@GuggenheimPartners.com) is the dealer manager. Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) is the information and depositary agent.

Intelsat Jackson is a subsidiary of Intelsat Luxembourg. Both are subsidiaries of Intelsat SA, a Luxembourg-based provider of satellite services that operates out of McLean, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.