PanAmSat $2.91 billion credit facility retail launch expected mid-July

By Sara Rosenberg

New York, June 29 - PanAmSat Corp.'s long awaited $2.91 billion credit facility is expected to launch to retail around mid-July, according to a market source. Credit Suisse First Boston and Citigroup are the joint lead arrangers and joint bookrunners on the deal. Bear Stearns and Lehman Brothers are co-documentation agents.

The facility consists of a $250 million five-year revolver talked at Libor plus 250 basis points, an $800 million five-year term loan A talked at Libor plus 250 basis points and a $1.86 billion seven-year term loan B talked at Libor plus 275 basis points, the source said.

The facility launched to managing agents on Monday.

"There were 10 institutions. [There was] reverse inquiry from a number of other accounts that wanted to be invited at that level but there are only a number of spots available," the source said, adding that no one has signed up on the managing agent level as of yet being that is too soon after the meeting.

Proceeds from the credit facility, combined with proceeds from a proposed bond offering, will be used to help fund the leveraged buyout of PanAmSat by affiliates of Kohlberg Kravis Roberts & Co. from The DirecTV Group Inc. in a transaction valued at about $4.3 billion, including the assumption of about $750 million of net debt.

The deal has taken so long to materialize being that it has to go through all sorts of regulatory approvals.

PanAmSat is a Wilton, Conn., satellite operator.

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