By Paul A. Harris
Portland, Ore., Sept. 5 – Intelsat Jackson Holdings SA priced an upsized $2.25 billion issue of six-year senior notes (Caa1/CCC+) at par to yield 8½% on Wednesday, according to a market source.
The issue size increased from $2 billion.
The yield printed in the middle of yield talk in the 8½% area and tight to the 8½% to 8¾% initial guidance.
The deal played to around $4 billion of orders, the source said.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co and Morgan Stanley & Co. LLC were the joint bookrunners.
The issuer is a subsidiary of Luxembourg-based Intelsat SA, a satellite telecommunications services company.
Proceeds will be used to refinance the Intelsat Jackson 7¼% senior notes due 2020 by means of a concurrent tender offer, and/or redemption.
| Issuer: | Intelsat Jackson Holdings SA
|
| Amount: | $2.25 billion, increased from $2 billion
|
| Maturity: | Oct. 15, 2024
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 568 bps
|
| Call protection: | Two years
|
| Trade date: | Sept. 5
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Distribution | Rule 144A and Regulation S
|
| Price talk: | 8½% area
|
| Marketing: | Quick to market
|
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