New Issue: PanAmSat upsizes 10-year notes to $800 million, yields 8½%

By Paul A. Harris

St. Louis, Mo., Jan. 25 - PanAmSat Corp. increased its offering of 10-year senior notes (Ba3/B) to $800 million from $500 million and priced the securities at par Friday to yield 8½%, according to a syndicate source.

"We were very, very pleased," commented a spokesperson from PanAmSat, shortly after the deal priced.

Price talk was 8½%-8¾%.

Credit Suisse First Boston was the bookrunner on the Rule 144A notes. Deutsche Banc Alex. Brown was co-lead. SG Cowen, and ABN Amro were co-managers.

Proceeds from the notes will be used along with a new bank facility to repay the company's $1.725 billion intra-company loan from its parent company, Hughes Electronics.

Issuer:	PanAmSat Corp.
Amount:	$800 million (increased from $500 million)
Maturity:	Feb. 1, 2012
Type:	Senior notes
Bookrunner:	Credit Suisse First Boston
Coupon:	8½% beginning Aug. 1, 2002
Price:	Par
Yield:	8½%
Spread:	342 basis points over the 5% Treasury due August 2011
Call features:	Callable on Feb. 1, 2007 at 104.25, then at 102.833, 101.417%, declining to par on Feb. 1, 2010 and thereafter
Equity clawback:	Until Feb. 1, 2005 at 108.5 for up to 35%
Settlement date:	February 1 (T+5)
Ratings:	Moody's: Ba3
	Standard & Poor's: B
Cusip:	697933AN9

© 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.