Intelsat Jackson begins consent bid; Intelsat Luxembourg to issue call

By Susanna Moon

Chicago, May 13 - Intelsat SA said subsidiary Intelsat Jackson Holdings SA began a consent solicitation from holders of its 8½% senior notes due 2019 and that another subsidiary Intelsat (Luxembourg) SA plans to call its 11¼% senior notes due 2017.

Intelsat Jackson is soliciting consents to amend the notes so that Intelsat Jackson and its restricted subsidiaries would be permitted to make restricted payments if Intelsat Jackson's debt-to-adjusted EBITDA ratio is no more than 6 times, eased from 5.5 times, according to a company press release.

The consent fee will be $10.00 per $1,000 principal amount of notes for which consents are delivered by 5 p.m. ET on May 20. Holders must be of record as of May 10.

The solicitation is conditioned on the company receiving the needed consents under the offer.

If the company receives the needed consents from holders of a majority of the notes, it will execute a supplemental indenture to the notes and pay the consent fee to those who delivered consents in the offer.

The solicitation agents are Credit Suisse Securities (USA) LLC (attn.: liability management group, 800 820-1653 or collect 212 325-2476), Barclays (attn.: liability management group, 800 438-3242 or collect 212 528-7581) and BofA Merrill Lynch (attn.: debt advisory, 888 292-0070 or collect 980 388-1457). The tabulation and information agent is Global Bondholder Services Corp. (866 804-2200 or collect 212 430-3774).

Call planned

In addition, Intelsat said subsidiary Intelsat (Luxembourg) will call its $1.68 billion of outstanding 11¼% senior notes due 2017 for redemption on June 12.

The company will pay 105.625% of par plus accrued interest to the redemption date.

The redemption is conditioned on the completion of one or more debt financings by the redemption date, the release noted.

Intelsat, which was formerly known as Intelsat Global Holdings SA, is a Luxembourg-based fixed satellite services provider.

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