Intelsat Jackson gets enough consents to amend 8½% notes due 2019

By Toni Weeks

San Luis Obispo, Calif., May 20 - Intelsat SA subsidiary Intelsat Jackson Holdings SA received the needed consents to amend the indenture governing its 8½% senior notes due 2019, according to a press release.

As noted before, Intelsat Jackson was soliciting consents to amend the notes so that Intelsat Jackson and its restricted subsidiaries would be permitted to make restricted payments if Intelsat Jackson's debt-to-adjusted EBITDA ratio is no more than 6 times, eased from 5.5 times.

The company will pay a consent payment of $22.50 per $1,000 principal amount of notes, which was raised on Monday from the initial amount of $10.00 per $1,000 of notes, according to an 8-K filing with the Securities and Exchange Commission.

The consent solicitation ended at 5 p.m. ET on May 20. The offer began on May 13 to holders of record as of May 10.

The solicitation was conditioned on the company receiving consents from holders representing a majority of the notes.

Following the receipt of the needed consents, the company executed a supplemental indenture implementing the amendments to the indenture governing the notes, the release said.

The solicitation agents were Credit Suisse Securities (USA) LLC (attn.: liability management group, 800 820-1653 or collect 212 325-2476), Barclays (attn.: liability management group, 800 438-3242 or collect 212 528-7581) and BofA Merrill Lynch (attn.: debt advisory, 888 292-0070 or collect 980 388-1457). The tabulation and information agent was Global Bondholder Services Corp. (866 804-2200 or collect 212 430-3774).

Call planned

As noted before, Intelsat subsidiary Intelsat (Luxembourg) will call its $1.68 billion of outstanding 11¼% senior notes due 2017 for redemption on June 12.

The company will pay 105.625% of par plus accrued interest to the redemption date.

The redemption is conditioned on the completion of one or more debt financings by the redemption date, the previous release noted.

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

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