Global satellite operator Intelsat has scheduled a call with lenders today to seek a US$2.25bn loan refinancing.
BofA Merrill Lynch is arranging the facility, which will refinance part of the operator’s US$3.2bn term loan due April 2018,…
Global satellite operator Intelsat has scheduled a call with lenders today to seek a US$2.25bn loan refinancing.
BofA Merrill Lynch is arranging the facility, which will refinance part of the operator’s US$3.2bn term loan due April 2018, SatelliteFinance was told.
The refi deal comprises a US$1.75bn term loan being extended to June 2019 and a US$500m revolving credit facility that is being extended by 18 months to July 2017.
Intelsat’s old 2018 loan pays 3 percentage points over LIBOR and the 2016 revolver carries a spread of 3 percentage points. Both lines hold a LIBOR floor of 1.25%.
The operator was unable to comment on the negotiations.
It is understood that terms could be agreed before the end of the week.
The company announced in a brief 6K today that Intelsat Jackson, its indirect wholly-owned subsidiary, is seeking an amendment to the credit agreement governing its senior secured credit facilities.
It stated the proposed move would “reduce the LIBOR floor, the ABR floor and the applicable margin with respect to the loans under the revolving credit facility and at least US$1.75bn of the loans under the term loan facility comprising the senior secured credit facilities and to extend the maturity of such loans”.
The operator last tapped the debt markets back in May, when it priced a dual tranche senior note offering worth US$2.635bn to also refinance debt. Those notes came just a month after it completed its high profile IPO, which raised a total £572.4m (US$922m).
Intelsat recently reported Q3 2013 revenue broadly flat compared with last year at US$642m. It posted US$508.4m in adjusted EBITDA for the three months to 30 September 2013, or 78% of revenues, compared with US$511.1m for the corresponding period last year.
Moody’s gave Intelsat’s new loan and revolver a Ba3 rating.
