PanAmSat to redeem 35% of 9% notes with IPO proceeds

New York, Dec. 20 - PanAmSat Corp. plans to redeem 35% or $353.3 million of its $1.01 billion of 9% senior notes using part of the proceeds of its planned initial public offering.

The company will spend $389.1 million on the redemption to cover the principal amount, accrued interest and the redemption premium.

Furthermore, the Wilton, Conn.-based satellite company also plans to repay about half of its term loan A debt with a portion of the IPO proceeds.

The rest of the $934.3 million net proceeds from the IPO will be used to pay a $200 million dividend to existing stockholders.

In addition, net proceeds from any greenshoe exercised will be used to repay additional borrowings under the term loan A of up to $114.3 million, the filing said.

The IPO was registered for up to $1.12 billion in an S-1 filing with the Securities and Exchange Commission.

Morgan Stanley, Citigroup and Merrill Lynch & Co. were named as underwriters.

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