Intelsat calls $366.4 million 11¼% notes and $353.55 million 6½% notes

By Susanna Moon

Chicago, April 23 - Intelsat SA plans to redeem $366.4 million of its 11¼% senior cash pay notes due 2017 and $353.55 million of its 6½% senior notes due 2013, according to an 8-K filing with the Securities and Exchange Commission.

The company plans to redeem the 11¼% notes at 105.625% of par plus accrued interest to the redemption date.

The redemption of the 11¼% notes will be funded using the proceeds of an insurance claim relating to the launch failure of the Intelsat 27 satellite, the filing noted.

Intelsat plans to redeem its 6½% notes at a redemption price equal to the greater of par and the sum of the present values of the remaining scheduled payments discounted to the redemption date of May 23 on a semi-annual basis at the Treasury rate plus 35 basis points.

The company also will pay accrued interest to the redemption date.

The Treasury rate will be determined on the third business day preceding the redemption date.

The redemption of the 6½% notes will be funded using the proceeds of Intelsat's $400 million initial public offering and concurrent $172.5 million series A preferred shares offering.

The company also prepaid about $138,218,000 of debt outstanding under its $810.9 million senior unsecured credit agreement using the proceeds of the IPO and concurrent preferred shares offering.

Intelsat, which was formerly known as Intelsat Global Holdings SA, is a Luxembourg-based fixed satellite services provider.

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