Intelsat Jackson lifts consent pay in bid to amend 8½% notes due 2019

By Susanna Moon

Chicago, May 20 - Intelsat SA subsidiary Intelsat Jackson Holdings SA increased the consent payment in the solicitation for its 8½% senior notes due 2019, according to an 8-K filing with the Securities and Exchange Commission.

The consent payment now will be $22.50 per $1,000 principal amount of notes, up from $10.00 per $1,000 of notes.

As noted before, Intelsat Jackson is 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 consent solicitation will end as scheduled at 5 p.m. ET on May 20. Holders must be of record as of May 10. The offer began on May 13.

The solicitation is conditioned on the company receiving the needed consents under the offer.

If the company receives the needed consents from holders of a majority of the notes, it will execute a supplemental indenture to the notes and pay the consent fee to those who delivered consents in the offer, according to a previous company press release.

The solicitation agents are 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 is 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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