Intelsat Jackson buys back nearly $1 billion of notes under change-of-control offer for 9¼%, 11¼% notes

By Angela McDaniels

Tacoma, Wash., July 1 - Intelsat Jackson Holdings, Ltd. bought back $694.97 million of its 9¼% senior notes due 2016 and $281.78 million of its 11¼% senior notes due 2016 on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The notes were purchased under a change-of-control tender offer that began on May 2 and expired at 5 p.m. ET on June 26.

Holders received 101% of par plus accrued interest.

Intelsat Jackson was required to hold the tender offer following the acquisition of its indirect parent company, Intelsat Holdings, Ltd., by Intelsat Global Subsidiary, Ltd., which is a direct wholly owned subsidiary of an entity formed by funds advised by BC Partners Holdings Ltd., Silver Lake Partners and other equity investors.

The company said it funded the tender offer with cash on hand and with proceeds from its $701.91 million offering of new 9½% senior notes due 2016 and $284.6 million offering of new 11½% senior notes due 2016.

Also on Tuesday, Intelsat Jackson prepaid $802.85 million of its $1 billion senior unsecured credit agreement dated Feb. 2, 2007, also under a change-of-control offer. Participating lenders received 101% of par.

The company said it used proceeds under a new term loan and cash on hand to repay the loans.

Intelsat Jackson is a subsidiary of Intelsat Ltd., which is a Pembroke, Bermuda-based provider of fixed satellite services.

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