Intelsat enters commitment letters for $4 billion of financing

By Sarah Lizee

Olympia, Wash., Dec. 9 – Intelsat SA said that on Monday Intelsat Jackson Holdings SA entered into commitment letters for $4 billion of financing with lead arrangers and bookrunners Barclays Bank plc, Goldman Sachs Lending Partners LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Credit Suisse Loan Funding LLC, according to an 8-K filed with the Securities and Exchange Commission.

Barclays is the administrative and collateral agent.

The commitment parties have agreed to provide $500 million of commitments for a $1 billion superpriority 364-day debtor-in-possession term loan A credit facility, $500 million of commitments for a $3.38 billion seven-year DIP term loan B credit facility, and to purchase $3 billion of 6½% eight-year senior secured notes.

Additional lenders have separately provided commitments for a $500 million superpriority secured DIP revolver, $500 million for the term loan A and $2.88 billion for the term loan B facility under a separate committee.

The revolver will mature in five years and bear interest at Libor plus 225 basis points to 275 bps, subject to a 0% Libor floor and based on leverage. The rate will start at Libor plus 275 bps for the first fiscal quarter. There is a commitment fee that ranges from 25 bps to 50 bps, based on leverage, with the fee starting out at 50 bps for the first fiscal quarter. The revolver will have up to $500 million available for letters of credit and up to $75 million for swingline loans.

The term loan A facility will bear interest at Libor plus 275 bps, subject to a 0% Libor floor.

The term loan B facility will bear interest at Libor plus 425 bps, subject to a 0.5% Libor floor.

The debt facilities will survive the emergence of the debtors from Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Virginia.

Intelsat is a Luxembourg-based satellite telecommunications company. The company filed bankruptcy on May 14, 2020 under Chapter 11 case number 20-32299.

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