Intelsat has taken a further step towards simplifying its capital structure and is seeking to redeem all of the US$485.8m outstanding of Intelsat S.A.’s 7.625% senior notes due 2012 and US$225m of Intelsat Sub Holdco’s 8.5% senior notes due 2013.
The…
Intelsat has taken a further step towards simplifying its capital structure and is seeking to redeem all of the US$485.8m outstanding of Intelsat S.A.’s 7.625% senior notes due 2012 and US$225m of Intelsat Sub Holdco’s 8.5% senior notes due 2013.
The redemptions will be funded with cash on hand, primarily from the excess proceeds of the US$3.75bn debt facility that the company secured via its Intelsat Jackson subsidiary in late January. So far the facility, which is split between a US$3.25bn 7.25-year senior secured term loan B and a US$500m revolving credit facility, has been used to repay Intelsat Corp’s US$1.72bn outstanding of senior secured term loans due 2014, US$151m of senior secured term loans due 2012, US$580.7m 9.25% senior unsecured notes due 2016 and US$111.8m of 9.25% senior unsecured notes due 2014, as well as Intelsat Sub Holdco’s US$330.2m outstanding of senior secured term loans due 2013. This would leave approximately US$356m available in the term loan B with the revolver currently undrawn.
The redemption date for both the 2012 and 2013 notes is 18 March 2011. Intelsat expects that after the partial redemption of the 2013 notes, approximately US$625m of the notes will be outstanding.
