PanAmSat to sell $1.01 billion 10-year bonds, pricing seen July 30

By Paul Deckelman

New York, July 16 - PanAmSat Corp. was heard by high yield syndicate sources Friday to be getting to ready to market a planned $1.01 billion offering of new 10-year senior notes beginning this coming week. The notes would be non-callable for the first five years after issue.

The sources said that The Wilton, Conn.-based satellite communications company's planned new deal would be led by joint bookrunning managers Credit Suisse First Boston and Citigroup, and would roadshow from July 22 through July 30. The deal is expected to price on July 30 after the conclusion of the roadshow.

The bond deal is one of several financing transactions that the company - currently 80% owned by DirecTV Group Inc. - announced on Wednesday, in connection with the anticipated sale of PanAmSat to affiliates of Kohlberg Kravis Roberts & Co., The Carlyle Group and Providence Equity Partners, Inc. The transactions also include the launch of new credit facilities totaling nearly $3 billion.

Proceeds of the financing would be used to fund tender offers for two existing series of the company's bonds - its $800 million outstanding 8½% senior notes due 2012 and its $275 million of outstanding 6 1/8% notes due 2005.

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