By Paul A. Harris
Portland, Ore., June 6 – Intelsat Jackson Holdings SA priced an upsized $400 million add-on to its 9¾% senior notes due July 15, 2025 (Caa2/CCC+) at par to yield 9.746% in a quick-to-market Thursday trade, according to market sources.
The issue size was increased from $300 million
The issue price came in the middle of price talk in the par area. Initial price talk had the deal coming at 99.5 to par.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC.
The satellite telecommunications company plans to use to proceeds for working capital and general corporate purposes, which may include, among other things, debt repayment, capital expenditures and strategic transactions.
| Issuer: | Intelsat Jackson SA
|
| Amount: | $400 million, increased from $300 million
|
| Maturity: | July 15, 2025
|
| Security description: | Add-on to 9¾% senior notes due July 15, 2025
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC
|
| Coupon: | 9¾%
|
| Price: | Par
|
| Yield: | 9.746%
|
| Spread: | 780 bps
|
| First call: | July 15, 2021 at 104.875
|
| Equity clawback: | 40% until July 15, 2020
|
| Trade date: | June 6
|
| Settlement date: | June 11
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | Par area (plus or minus 0.25 point)
|
| Marketing: | Quick to market
|
| Original issue: | $1.5 billion priced in June 2017
|
| Fungibility: | Rule 144A add-on notes will become fungible with the existing notes; Regulation S add-on notes will become fungible with the existing notes following a 40-day cooling period
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