Intelsat unit ups tender amount for 7 5/8%, 6½% notes to $375 million

By Jennifer Chiou

New York, Jan. 29 - Intelsat, Ltd. announced that its subsidiary, Intelsat Subsidiary Holding Co., Ltd., augmented the amount of notes it will accept in the 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 now purchase $375 million of notes, up from $200 million, excluding accrued interest.

As of the early deadline of 5 p.m. ET on Jan. 28, the company received tenders from holders of $113.95 million of the 7 5/8% notes and $346.23 million of the 6½% notes.

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 $375 million.

Intelsat said that it will also pay accrued interest.

The tender ends at midnight ET on Feb. 11. It began on Jan. 14.

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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