PanAmSat to pay extra interest on 8½% notes due to delay on Hughes filing

New York, Aug. 13 - PanAmSat Corp. will pay extra interest on its $800 million of 8½% senior notes due 2012 issued earlier this year because of a delay in registering the securities for public trading.

The additional payment is 25 basis points beginning Aug. 1, stepping up 25 basis points every 90 days to a maximum of 150 basis points, according to a filing with the Securities and Exchange Commission.

The Wilton, Conn. satellite company priced the 8½% notes on Jan. 25 in a Rule 144A offering.

It filed an S-4 statement to register the notes with the SEC on April 26, according to a separate SEC filing on Tuesday.

But PanAmSat said that it has been told by the SEC that the S-4 will not become effective until the commission has completed its review of an S-4 registration filed by HEC Holdings, Inc., an affiliate of Hughes Electronics. HEC's S-4 is for the separation of Hughes from General Motors Corp. and its merger with EchoStar Communications Corp. PanAmSat is 81% owned by Hughes.

PanAmSat noted that it does not believe the delay or payment of extra interest will have a significant impact on its consolidated financial statements.

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