PanAmSat tenders for 6 1/8%, 8½% notes

New York, July 14 - PanAmSat Corp. said it has begun a tender offer for its $800 million principal amount of 8½% senior notes due 2012 and $275 million principal amount of 6 1/8% notes due 2005 and a consent solicitation for the 8½% notes.

The price for the 8½% notes will be set as the present value on the settlement date of the $1,042.50 redemption price on their first call date of Feb. 1, 2007 plus accrued interest through that period.

The discount rate will be set as 50 basis points over the yield to maturity of the 2.25% U.S. Treasury note due Feb. 15, 2007. Accrued interest up to the settlement date will be subtracted. Pricing will be set at 2 p.m. ET on the tenth business day before the expiration.

The total includes a $20 per $1,000 consent payment that will only be paid to holders who tender and deliver consents by the consent deadline of 5 p.m. ET on July 27.

The tender expires at 5 p.m. ET on Aug. 13.

The consent solicitation is to amend the indenture to eliminate most of the restrictive covenants and certain other provisions.

Adoption of the proposed amendments requires the consent of holders of at least a majority of the principal amount of the notes outstanding.

Holders who tender must deliver consents and consents cannot be delivered without tenders.

The offer is subject to at least a majority of the notes being tendered, the receipt of the necessary consents and other conditions.

For the 6 1/8% notes, PanAmSat will pay a price equal to the present value on the settlement date of the notes' $1,000 value at maturity on Jan. 15, 2005 plus accrued interest through that period, discounted using a yield of 50 basis points over the yield to maturity of the 1.75% U.S. Treasury note due Dec. 31. Accrued interest up to the settlement date will be subtracted. Pricing will be set at 2 p.m. ET on the tenth business day before the expiration.

The total includes a $20 per $1,000 early tender payment that will only be paid to holders who tender by 5 p.m. ET on July 27.

The tender expires at 5 p.m. ET on Aug. 13.

Citigroup Global Markets Inc. (800 558-3745 or call collect 212 723-6106) is dealer manager and solicitation agent. The information agent is Global Bondholder Services Corp. (866 952-2200 and 212 430-3774).

The Wilton, Conn., satellite operator is carrying out the tender as part of its sale to affiliates of Kohlberg Kravis Roberts & Co., The Carlyle Group and Providence Equity Partners, Inc.

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