Intelsat/PanAmSat change-of-control amendment passes

By Sara Rosenberg

New York, Jan. 24 - The Intelsat Ltd./PanAmSat Holding Corp. amendment that would allow the companies' credit facilities to remain in place following the purchase of Intelsat, which merged with PanAmSat in 2006, by BC Partners has been approved, according to a market source.

Under the amendment, pricing on Intelsat's and PanAmSat's secured bank debt is being increased to Libor plus 250 basis points from current pricing of Libor plus 200 bps. PanAmSat's pricing will then range anywhere from Libor plus 250 bps to 287.5 bps based on a leverage grid.

This pricing also applies to PanAmSat's new $150 million term loan that was launched last week and is being used to redeem $150 million issue of 6 3/8% senior notes.

Also under the amendment, Intelsat's term loan is becoming non-callable for two years and PanAmSat's term loan is being divided into a term loan B-1 that is callable at par, a term loan B-2 that has call protection of 102 in year one and 101 in year two, and a term loan B-3 that is non-callable for one year, then at 102 in year two and 101 in year three.

In addition, the amendment reduces the size of Intelsat's revolver by $50 million and PanAmSat's revolver by $75 million.

Senior secured leverage ratios are being added to the covenant-light term loans, with Intelsat getting a 1.5 times test and PanAmSat getting a 4.5 times test.

And lastly, Credit Suisse is taking over the role of administrative agent from Citigroup.

The first 50.1% of lenders to approve the amendment are getting paid a fee of 500 bps. The remainder is getting paid a fee of 100 bps.

BC Partners is buying about 76% of the primary ownership of Intelsat. The current shareholders of Intelsat, including funds advised by Apax Partners, Apollo Management, Madison Dearborn Partners, Permira and management, are expected to receive upon closing $4.6 billion in cash, and will continue to hold about 24% of the primary ownership in the company.

Intelsat is a Pembroke, Bermuda, satellite company.

© 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.