Inmarsat launches tender offer for 7 3/8% senior notes due 2017

By Marisa Wong

Madison, Wis., May 20 - Inmarsat Finance plc has begun a tender offer to repurchase for cash any and all of its outstanding $850 million 7 3/8% senior notes due 2017, according to a press release.

The offer expires at 11:59 p.m. ET on June 17.

Holders who tender their notes by 5 p.m. ET on June 3, the early tender date, will be eligible to receive the total tender consideration equal to 104.05% of the principal amount of notes accepted for purchase. The total consideration includes a 3% early tender premium.

Holders who tender their notes after the early deadline will be eligible to receive the tender offer consideration of 101.05% of the principal amount of notes accepted for purchase.

In addition, the company will pay accrued interest up to, but excluding, the applicable settlement date.

The company expects to settle early tenders after the early deadline, once the conditions of the offer are satisfied or waived. The final settlement date is expected to be June 18.

Tenders may not be withdrawn after 5 p.m. ET on June 3.

The offer is subject to a financing condition. On Tuesday the company announced it plans to price $1 billion of eight-year notes, proceeds of which will be used to fund the tender offer.

Once the offer is completed, any remaining notes not tendered will be redeemed on or about July 7. The redemption price will be 103.688 plus accrued interest.

Credit Suisse Securities (USA) LLC is the dealer manager, and D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 800 488-8095 for all others) is the information and tender agent.

Inmarsat is a London-based satellite telecommunications company.

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