Global satellite operator Intelsat is back in the bond market after a brief hiatus with a dual tranche senior note offering worth US$2.635bn.
The notes, which are being sold via subsidiary Intelsat Jackson, are split between US$2bn of senior notes due…
Global satellite operator Intelsat is back in the bond market after a brief hiatus with a dual tranche senior note offering worth US$2.635bn.
The notes, which are being sold via subsidiary Intelsat Jackson, are split between US$2bn of senior notes due 2023 and a US$635m add-on to its existing 6.625% senior notes due 2022.
The new 2023 notes priced at par while the 2022 notes priced at 106.25% to yield 6.235%
Credit Suisse is lead bookrunner on the issue Goldman Sachs, Deutsche Bank, Morgan Stanley, Barclays, JP Morgan and BofA Merrill Lynch bookrunners.
Net proceeds from the sale of the notes, together with other available cash, are to be used to repay the US$868m outstanding under the subsidiary’s two senior unsecured credit agreements.
In addition, Intelsat Jackson expects to pay a dividend to Intelsat Luxembourg, which will in turn use the funds, as well as other available cash, to redeem all of its 11.25% senior notes due 2017.
On 13 May, the company issued a notice of redemption for the US$1.68bn outstanding of 2017 notes held by Intelsat Luxembourg. The company will pay 105.625% of the principal amount of the notes and the redemption date 12 June 2013.
Last month, Intelsat completed its initial public offering raising a total of £572.4m. The company stated that proceeds from the offering would predominantly be used to repay debt and immediately on completion, the satellite operator repaid approximately US$138.2m of indebtedness outstanding under the US$810.9m senior unsecured credit agreement, dated July 2008.
In addition, the satellite operator issued a notice of redemption for all of Intelsat Investments’ outstanding US$353.55m 6.5% senior notes due 2013, as well as the outstanding US$366.4m of Intelsat Luxembourg’s 11.25% senior cash pay notes due 2017. The redemption date for both offers is 23 May 2013.
Alongside the IPO proceeds, Intelsat received approximately US$400m of insurance proceeds relating to the launch failure of Intelsat-27.
