Intelsat-PanAmSat merger to generate combined $3.2 billion notes in multiple tranches

By Paul A. Harris

St. Louis, May 31 - PanAmSat Holding Corp.'s acquisition of Intelsat (Bermuda) Ltd. will generate a combined $3.2 billion of high-yield bond issuance in multiple tranches, according to company and syndicate sources.

A roadshow is expected to get underway on Tuesday, with pricing expected late in the week of June 12.

Deutsche Bank Securities, Citigroup, Credit Suisse and Lehman Brothers will be joint bookrunners for the Rule 144A and Regulation S offerings.

PanAmSat Holding Corp. will offer $725 million of 10-year senior notes, and PanAmSat Corp., the operating company, will offer $575 million of 10-year senior notes.

Meanwhile Intelsat (Bermuda) Ltd. will offer $1.9 billion of seven-year and 10-year senior notes. The tranche sizes remain to be determined.

Proceeds and cash on hand will be used to fund a portion of the acquisition of PanAmSat Holding Corp. by Intelsat (Bermuda), Ltd., a subsidiary of Intelsat, Ltd.

PanAmSat is a Wilton, Conn.-based satellite network operator.

Intelsat is satellite communications company based in Pembroke, Bermuda, and London.

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