Market sees PanAmSat $700 million "coming soon"

By Paul A. Harris

St. Louis, Mo., Jan. 14 - PanAmSat Corp. will bring $700 million in new bonds via a syndicate led by Credit Suisse First Boston and Deutsche Banc Alex. Brown, a syndicate source informed Prospect News on Monday.

"The last I heard, it was $1.25 billion in loans, and $700 million in bonds," the source said, adding that CSFB and DBAB are leading both the loans and the bonds.

"The deal refinances an intra-company loan to Hughes," the syndicate source added.

A market source told Prospect News that PanAmSat's paper would come in the form of senior notes.

"Their bank debt is levered three times and the bonds are levered four times," the source added, stating that the deal for the new notes will be launched "as soon as the bank deal is shored up."

Another market source told Prospect News that the bank deal was struggling a bit due to structure regarding the new parent's ability to upstream all excess cash flow.

"Smaller ticket sizes are being considered," the source said.

The company is headquartered in Wilton, Conn.

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