Intelsat, PanAmSat launch loan amendments to extend tenors, change covenants

By Sara Rosenberg

New York, May 31 - Intelsat Ltd. and PanAmSat Holding Corp. held a bank meeting on Wednesday afternoon to launch amendments to each of their credit facilities that would basically extend maturities and modify covenant packages, according to a market source.

Citigroup is the lead bank on the amendments for both credit facilities.

For Intelsat, the amendment would extend the maturity on its $300 million revolver to six years and extend the maturity on its $346 million term loan to seven years, the source said.

In addition, the Intelsat term loan would be changed to a covenant-light structure, the source continued.

For PanAmSat, the amendment would extend the maturities on its $250 million revolver and $356 million term loan A to six years, and extend the maturity on its $1.639 billion term loan B to 7½ years, the source said.

Furthermore, the PanAmSat term loan B would be changed to a covenant-light structure, the source added.

Existing pricing grids on both the Intelsat and the PanAmSat credit facilities would remain unchanged.

The amendments are being done as part of the merger of the two companies that was first announced on Aug. 9, 2005, under which Intelsat will acquire PanAmSat for $25.00 per share in cash, or $3.2 billion.

Closing of the transaction is subject to obtaining regulatory approval from the FCC. All other regulatory approvals required prior to closing have been obtained.

Intelsat is a Pembroke, Bermuda, satellite company. PanAmSat is a Wilton, Conn., satellite company.

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