Intelsat has raised US$2.65bn through a new dual tranche bond offering as it continues to refinance its debt in order to simplify its capital structure.
As with the US$3.75bn loan facility secured in January 2011, the new debt has been issued via…
Intelsat has raised US$2.65bn through a new dual tranche bond offering as it continues to refinance its debt in order to simplify its capital structure.
As with the US$3.75bn loan facility secured in January 2011, the new debt has been issued via subsidiary Intelsat Jackson and will be used to replace the remaining debt held by Intelsat Sub Holdco and Intelsat Intermediate Holdco.
The new offering comprises US$1.5bn of 7.25% senior notes due 2019 and US$1.15bn 7.5% senior notes due 2021. Both notes priced at par and while they are not secured, they are to be guaranteed by the parent company. Intelsat had originally envisioned the US$2.65bn financing being a triple tranche offering with an additional tranche of senior notes due 2023.
Barclays Capital is lead bookrunning manger on the transaction with BofA Merrill Lynch, Credit Suisse, Goldman Sachs and Morgan Stanley co-managers. The offering is expected to close on 5 April.
Proceeds from the financing will be used to funds the tender offers and consent solicitations launched by Intelsat Jackson, Intelsat Sub Holdco and Intelsat Intermediate Holdco on 21 March and totalling approximately US$2.53bn. Those tender offers expire on 15 April.
Intelsat Jackson is seeking to repurchase for cash any and all of its outstanding US$55m 9.25% senior notes due 2016 and any and all of its outstanding US$284.6m 11.5% senior notes due 2016. The subsidiary is also soliciting the consent of the holders to certain amendments to the indentures governing such notes, such as to eliminate substantially all of the restrictive covenants.
Intelsat Sub Holdco has launched an offer for any and all of its outstanding US$625.3m 8.5% senior notes due 2013, the US$681m outstanding of its 8.875% senior notes due 2015 and its US$400m of 8.875% senior notes due 2015, Series B. Intelsat Intermediate Holdco is offering to buy all of its US$481m 9.5% senior discount notes due 2015.
Any outstanding debt that is not validly tendered can be acquired through a call notice at a later date.
Barclays Capital is acting as the lead dealer manager and solicitation agent for each of the tender offers and consent solicitations.
