Intelsat holders exchange another $25,000 of 6¾% notes since Jan. 6

By Susanna Moon

Chicago, Jan. 20 – Intelsat SA said investors had tendered for exchange another $25,000 of its 6¾% senior notes due 2018 in the notes-only offer since Jan. 6.

In exchange, Intelsat’s wholly owned subsidiary Intelsat (Luxembourg) SA is offering newly issued 12½% senior notes due Nov. 15, 2024.

Intelsat will accept for purchase all of the notes tendered for exchange in the notes-only offer, according to a company update.

As previously announced, investors had tendered for exchange $403.3 million, or 80.7%, of its 6¾% senior notes due 2018 as of the early deadline of 11:59 p.m. ET on Jan. 4.

Intelsat will issue $1,000 principal amount of 12½% notes due 2024 for each $1,000 principal amount of 6¾% notes due 2018 tendered for exchange.

In a separate exchange offer that began Dec. 7, the company was proposing to exchange up to $217 million principal amount of outstanding 6¾% senior notes due 2018 and up to $624 million principal amount of outstanding 7¾% senior notes due 2021, each issued by Intelsat (Luxembourg) SA.

The company was offering cash and new 12½% senior notes due 2022 issued by wholly owned subsidiary Intelsat Connect Finance SA in exchange for tendered notes.

The company gave an exchange update on Dec. 21 and then added a new offer for its 6¾% notes due 2018 that consists only of new notes without a cash component.

In the notes-only offer, the exchange ran until 11:59 p.m. ET on Jan. 19.

Settlement will occur on Jan. 6 for notes tendered by the early deadline and on Jan. 20 for all other tenders.

Holders will also receive accrued interest in cash to but excluding the settlement date. Those who tendered their notes for exchange after the early deadline will receive on the final settlement date 2024 notes reduced by the amount of interest accrued on the 2024 notes received from the early settlement date to but excluding the final settlement date.

The new notes due 2024 will be callable at par beginning June 1, 2017. Before that, the notes are callable at 101.688% of par.

Questions about the exchange may be directed to Intelsat Luxembourg at investor.relations@intelsat.com.

Intelsat is a Luxembourg-based communications satellite company.

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