Intelsat subsidiary begins tender for 7 5/8%, 6½% notes

By Jennifer Chiou

New York, Jan. 14 - Intelsat, Ltd. announced that its subsidiary, Intelsat Subsidiary Holding Co., Ltd., launched a modified Dutch auction tender for Intelsat, Ltd.'s 7 5/8% senior notes due 2012 and 6½% senior notes due 2013.

The company said it will purchase $200 million of notes, excluding accrued interest.

For each $1,000 principal amount of the $600 million total of 7 5/8% notes, Intelsat said that the acceptable bid price range is $717.50 to $817.50, including the $30.00 early participation payment.

For each $1,000 principal amount of the $700 million total of 6½% notes, Intelsat said that the acceptable bid price range is $635 to $735, including the $30.00 early participation payment.

The total consideration factors in a base price plus a clearing premium not to exceed $100. The company said that the clearing will be the lowest single premium at which it will be able to spend the $200 million.

Intelsat said that it will also pay accrued interest.

The early deadline is 5 p.m. ET on Jan. 28. The tender ends at midnight ET on Feb. 11.

The offer is conditioned upon the satisfaction or waiver of certain conditions, including Intelsat receiving sufficient funds.

Goldman, Sachs & Co. (800 828-3182 or call collect 212 357-4692) is the dealer manager. MacKenzie Partners, Inc. (800 322-2885 or call collect 212 929-5500) is the information agent and depositary.

Intelsat is a Pembroke, Bermuda, satellite services provider.

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