Intelsat, noteholders abandon talks on offer to exchange 6¾% notes

By Susanna Moon

Chicago, Aug. 29 – Intelsat SA failed to strike an agreement with noteholders to swap out the 6¾% senior notes due 2018 issued by wholly owned subsidiary Intelsat (Luxembourg) SA.

During talks held in August, the company made a non-binding exchange offer for new notes with a maturity beyond 2018 and credit enhancements, additional restrictions on usage of cash by Intelsat Luxembourg, a put option and call protection, according to a 6-K filing with the Securities and Exchange Commission.

The new notes also would have terms that vary over the life of the notes and an increased interest rate exceeding that of the senior secured notes due 2022 issued by Intelsat Jackson Holdings SA on June 30, the filing noted.

The discussions are not continuing at this time, but the company added, “We continually evaluate ways to simplify our capital structure and opportunistically extend our maturities. Accordingly, discussions regarding a possible 2018 notes transaction may resume at any time, but there is no assurance that any such discussions will occur or result in a consummated transaction.”

Intelsat is a Luxembourg-based provider of satellite services that operates out of McLean, Va.

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