Intelsat receives needed consents to amend 9¼%, 6 7/8% senior notes

By Marisa Wong

Madison, Wis., Sept. 30 - Intelsat SA announced that its subsidiary, Intelsat Corp., received the necessary consents to amend the indentures governing its 9¼% senior notes due 2014 and its 6 7/8% senior secured debentures due 2028 by 5 p.m. ET on Sept. 29, the consent deadline.

Intelsat is soliciting consents to amend the indentures to eliminate substantially all of the restrictive covenants, certain events of default and other provisions.

The company launched a cash tender offer to purchase any and all of its $658.1 million 9¼% notes and any and all of its $125 million 6 7/8% notes on Sept. 16.

As of the consent deadline, Intelsat received tenders of $546,286,000 of the 9¼% notes and $124,859,000 of the 6 7/8% notes.

The tender offer will expire at 11:59 p.m. ET on Oct. 14.

Since consents were delivered for more than a majority in principal amount of each of the 9¼% notes and 6 7/8% notes, the company has entered into supplemental indentures for the 9¼% notes and the 6 7/8% notes with the respective trustees.

Wells Fargo Bank, NA is the trustee for the 9¼% notes and the Bank of New York Mellon Trust Co., NA is the trustee for the 6 7/8% notes.

The company will pay $1,035 per $1,000 in 9¼% notes, which includes a $30 consent payment for notes tendered prior to the consent time of 5 p.m. ET on Sept. 29.

Intelsat will pay $1,200 per $1,000 in 6 7/8% notes, which includes a $40 consent payment for notes tendered prior to the consent time.

Investors will also receive accrued interest from the last interest payment date to, but not including, the purchase date.

Payment for notes tendered prior to the consent time and accepted for purchase is expected to occur on Sept. 30. Payment for notes tendered after the consent time but at or before the expiration time is expected to occur Oct. 15.

For the 9¼% notes, Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-4500 or 212 430-3774) is the information agent.

For the 6 7/8% notes, Deutsche Bank Securities Inc. (212 250-5655) is the dealer manager and solicitation agent. Global Bondholder Services is the information agent.

Intelsat is a Pembroke, Bermuda-based provider of fixed satellite services.

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