Intelsat wraps exchange with 99.74% of 6 5/8% notes tendered

New York, Sept. 27 – Intelsat SA said its subsidiary Intelsat Jackson Holdings SA received tenders for $141,423,000, or 99.74%, of its $141,798,000 of outstanding 6 5/8% senior notes due 2022 by the final deadline in its exchange offer for the notes.

The company said in a news release that no additional notes were tendered after the early deadline.

However the final response is slightly different from the $141,431,000 figure previously announced.

Intelsat disclosed that response level on Sept. 13 and also said that it took in consents for $141,383,000, or 99.71%, of the notes.

Early settlement followed on Sept. 15.

Intelsat announced the exchange on Aug. 30, saying it was offering newly issued 8% senior secured notes due 2024.

As previously announced, the total exchange value was $705 par amount of new notes plus $120 in cash for each $1,000 principal amount of notes tendered for exchange by 11:59 p.m. ET on Sept. 12, the early tender date.

Included in the total is a $20 cash payment that will only be made to those who participated by the early deadline.

The company also paid accrued interest to but excluding the settlement date, which was Sept. 15 for early tendered notes and Sept. 27 for remaining tenders.

The company was also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and events of default and to waive any defaults or events of default.

The consent payment was $65 for each $1,000 principal amount.

Holders could tender their notes in the exchange without giving their consents in the solicitation, and a tender did not automatically constitute a delivery of consent. Also, holders could submit consents without tendering their notes for exchange, and submitting consents in the solicitation did not automatically constitute a tender in the exchange.

The new notes being offered were an add-on to Intelsat Jackson’s $1.25 billion principal amount of 8% senior secured notes due 2024.

The exchange ended at 11:59 p.m. ET on Sept. 26. The consent solicitation ended at 5 p.m. ET on Sept. 12.

On Aug. 29, holders who collectively held about $78.4 million principal amount, or 55.3%, of the 2022 notes entered into a support agreement with Intelsat Jackson to tender their notes for exchange and give consents.

The exchange was contingent upon at least a majority of the outstanding notes being tendered for exchange and receipt of the needed majority of consents in the solicitation.

The exchange offer was being made, and the new 2024 notes will be issued, only to qualified institutional buyers under Rule 144A, those who are institutional accredited investors under Regulation D or those who are non-U.S. persons under Regulation S.

Global Bondholder Services Corp. (212 430-3774, 866 470-4200 or http://gbsc-usa.com/eligibility/intelsat) is the information agent.

Intelsat is a Luxembourg-based communications satellite company.

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