Intelsat to buy $673.45 million 6 5/8% notes in oversubscribed tender

New York, July 15 – Intelsat SA said its indirect wholly owned subsidiary Intelsat Jackson Holdings SA will purchase $673,454,000 of its 6 5/8% senior notes due 2022 in its tender offer for three series of notes.

Because the offer was oversubscribed, only some of the 6 5/8% notes that were tendered will be accepted and none of the two series of notes with lower acceptance priorities will be bought.

Settlement was scheduled for Friday, according to a news release.

The tender response was as follows, with the notes listed in order of acceptance level:

• $757,978,000 of the $815,252,000 of outstanding 6 5/8% senior notes due 2022 were tendered. Of these, $673,454,000 will be accepted. The total price is $687.50 per $1,000 principal amount, earlier reduced from $740.00;

• $1,025,137,000 of the $2 billion of outstanding 5½% senior notes due 2023 were tendered. None will be accepted. The total price is $677.50 per $1,000 principal amount, earlier reduced from $730.00; and

• $335,941,000 of the $1.15 billion of outstanding 7½% senior notes due 2021 were tendered. None will be accepted. The total price of $705.00 per $1,000 principal amount, earlier reduced from $775.00.

Intelsat announced the tender on May 12, saying it was offering to purchase notes from the three series for up to the maximum amount in cash.

Pricing was reduced on May 18.

On June 30, the company lowered the size of the offer, cutting the maximum payment amount, excluding accrued interest, to $463 million from $625 million.

It also extended the early tender date to match the expiration, which was 11:59 p.m. ET on July 14. Because the early tender date is the same as the end of the tender, all those whose notes are accepted for purchase will receive the total price.

Originally, the total payment included an early tender premium of $20.00 for each $1,000 principal amount of notes tendered by May 25, the early tender date.

The offer was previously extended from 5 p.m. ET on June 29 and, before that, from June 22, June 14 and June 9.

Guggenheim Securities, LLC (212 823-6688 or Robert.Ramirez@GuggenheimPartners.com) is the dealer manager. Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) is the information and depositary agent.

The tender was subject to a financing condition, which was satisfied when Intelsat privately placed $490 million principal amount of 9½% senior secured notes with a discount of 2%.

Intelsat Jackson is a subsidiary of Intelsat Luxembourg. Both are subsidiaries of Intelsat SA, a Luxembourg-based provider of satellite services that operates out of McLean, Va.

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