Inmarsat consent solicitation fails

New York, May 18 - Inmarsat Group Ltd. said its solicitation of consents from holders of the $477.5 million of 7 5/8% senior notes due 2012 issued by Inmarsat Finance plc and the 10 3/8% senior discount notes due 2012 issued by Inmarsat Finance II plc ended without the necessary approvals being received.

The company said there will be no further extensions, the notes have not been amended and no consent fee will be paid.

The solicitation expired at 5 p.m. ET on May 17 after being extended from 5 p.m. ET on May 13.

At its previous announcement on May 10, Inmarsat increased the consent payment on offer and extended the expiration from 5 p.m. ET on May 11.

The consent fee was $50 per $1,000 for both series of notes, up from $20 for the 7 5/8% notes and $25 for the 10 3/8% notes.

The London-based satellite operator announced the solicitation on April 20, saying it was to amend the note indenture to allow a possible public offering of ordinary shares by Inmarsat Group Holdings Ltd. and the expected dividend policy.

Consents are required from holders of at least a majority of each series of notes.

Inmarsat said that on closing of the equity offering it would redeem 35% of the 7 5/8% notes at a price of 107.625.

The solicitation was previously extended on the original terms on May 5.

Credit Suisse First Boston is solicitation agent.

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