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Intelsat greenshoe ups 4.5% convertibles due 2025 to $402.5 million
By Marisa Wong
Morgantown, W.Va., June 19 – The initial purchasers of Intelsat SA’s 4.5% convertible senior notes due 2025 exercised their $52.5 million over-allotment option in full, increasing the total size of the issue to $402.5 million, according to an 8-K filing with the Securities and Exchange Commission.
Intelsat priced $350 million of the seven-year convertible notes after the market close on June 11 with a coupon of 4.5% and an initial conversion premium of 22.5%, as previously reported.
Pricing came richer than price talk for a coupon of 4.75% to 5.25% and at the rich end of price talk for an initial conversion premium of 17.5% to 22.5%, according to a market source.
Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are bookrunners for the Rule 144A deal.
The initial size of the deal was $300 million with a greenshoe of $45 million.
The notes are non-callable for four years and then may be redeemed subject to a 130% hurdle with a make-whole.
The convertible notes were offered concurrently with a $200 million common share offering, which priced at $14.84 per share. The equity offering carries a greenshoe of $30 million, or 2,021,563 shares.
Morgan Stanley and Goldman Sachs are also joint bookrunners for the common stock offering.
The convertible notes will be guaranteed by Intelsat Envision Holdings LLC, a new subsidiary of Intelsat (Luxembourg) SA that will become the parent company of Intelsat Connect Finance SA, according to a previous news release.
Proceeds will be used to purchase Intelsat Luxembourg’s 7¾% senior notes due 2021 through a tender offer or open market purchases.
Intelsat is a Luxembourg-based communications satellite services provider.
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