Moody's ups PanAmSat loan to Ba3, notes to Ba3, B1

Moody's Investors Service said it upgraded the debt ratings for PanAmSat Holding Corp. and its operating subsidiary, PanAmSat Corp., concluding a review dated Dec. 20, 2004. The outlook is stable.

Moody's upped PanAmSat's issuer rating to B1 from B2, senior implied rating to Ba3 from B1, $2.3 billion senior secured bank facility to Ba3 from B1, $150 million senior secured notes due 2008 to Ba3 from B1, $125 million senior secured notes due 2028 to Ba3 from B1 and $656.5 million senior unsecured notes due 2014 to B1 from B2.

Moody's said this review was precipitated by the company's announced intention to complete a $900 million initial public equity offering, of which a substantial portion was stated to be used to reduce debt.

The upgrade reflects the affect of the $900 million equity issue on the company's credit metrics and balance sheet capitalization, according to Moody's.

Proceeds from the equity offering will be used to pay a dividend to the company's shareholders of $200 million, to reduce debt by about $625 million and for general corporate purposes.

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