Intelsat calls $1.5 billion 7¼% notes at par after scrapped exchange

By Susanna Moon

Chicago, June 16 – Intelsat SA’s indirect wholly owned subsidiary Intelsat Jackson Holdings SA plans to redeem its $1.5 billion principal amount of outstanding 7¼% senior notes due 2019, according to a 6-K filing with the Securities and Exchange Commission.

The redemption price will be par plus accrued interest to but excluding the redemption date.

As announced June 1, Intelsat terminated its exchange offers after failing to meet the minimum tender thresholds.

The exchange ended at 11:59 p.m. ET on May 31 after being extended several times amid response rates of less than 1%.

As announced March 24, the company’s indirect wholly owned subsidiaries Intelsat Jackson Holdings SA, Intelsat Connect Finance SA (ICF) and Intelsat (Luxembourg) SA were offering to swap out some senior notes.

In connection with the exchange offers, the issuers were soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants, to modify or eliminate some other provisions and to waive some defaults and events of defaults.

In the exchange offers, Intelsat Jackson was offering to issue the following:

• New 7¼% mandatorily exchangeable senior notes due 2019 to be issued by Intelsat Jackson (Jax 2019 exchange notes) for any and all of its outstanding 7¼% senior notes due 2019 (Jax 2019 existing notes);

• New 7¼% mandatorily exchangeable senior notes due 2020 to be issued by Intelsat Jackson (Jax 2020 exchange notes) for any and all of its outstanding 7¼% senior notes due 2020 (Jax 2020 existing notes); and

• New 7½% mandatorily exchangeable senior notes due 2021 to be issued by Intelsat Jackson (Jax 2021 exchange notes) for any and all of its outstanding 7½% senior notes due 2021 (Jax 2021 existing notes).

For these offers, the tender count was as follows as of May 17:

• $12,214,000, or 0.81%, of 7¼% senior notes due 2019;

• $6,975,000, or 0.32%, of 7¼% senior notes due 2020; and

• $705,000, or 0.06%, of 7½% senior notes due 2021.

Intelsat is a Luxembourg-based communications satellite company.

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