Intelsat subsidiaries begin tender offers for $2.53 billion of notes

By Angela McDaniels

Tacoma, Wash., March 21 - Intelsat SA announced that three of its subsidiaries began tender offers for six series of notes.

Each subsidiary is also soliciting consents to proposed amendments to the note indentures that would eliminate substantially all of the restrictive covenants, some events of default and other provisions, according to a company news release.

Each tender offer and consent solicitation is being made independently of the other offers and consent solicitations.

Intelsat Jackson Holdings SA is offering to purchase its $55,035,000 principal amount of 9¼% senior notes due 2016 and $284,595,000 principal amount of 11½% senior notes due 2016.

For each $1,000 principal amount, the purchase price is $1,062.88 for the 9¼% notes and $1,078.53 for the 11½% notes.

Intelsat Intermediate Holding Co. SA began a tender offer for its $481.02 million principal amount at maturity of 9½% senior discount notes due 2015.

Holders will receive $1,034.17 for each $1,000 principal amount at maturity.

Intelsat Subsidiary Holding Co. SA is offering to purchase its $625,346,000 principal amount of 8½% senior notes due 2013, $681,012,000 principal amount of 8 7/8% senior notes due 2015 and $400 million principal amount of 8 7/8% senior notes due 2015, series B.

For each $1,000 principal amount, the purchase price is $1,002.50 for the 8½% notes and $1,032.08 for both series of 8 7/8% notes.

Each of the purchase prices noted above includes a consent payment of $30.00 per $1,000 principal amount or principal amount at maturity of notes tendered by 5 p.m. ET on April 1, the consent deadline.

The companies will also pay accrued interest up to but excluding the purchase date, which is expected to be April 4 for notes tendered by the consent deadline and April 15 for notes tendered after the consent deadline but prior to the tender offer expiration.

Holders cannot tender their notes without delivering consents and vice versa.

Each tender offer will expire at 11:59 p.m. ET on April 15.

Each tender offer and consent solicitation is conditioned on the receipt of enough funds to pay for the tendered notes and the receipt of consents from the holders of at least a majority of the outstanding notes not owned by the issuer or its affiliates by the consent deadline.

Barclays Capital Inc. (800 438-3242 or 212 528-7581) is the lead dealer manager and solicitation agent. The information agent and depositary is Global Bondholder Services Corp. (866 470-4500 or 212 430-3774).

Intelsat provides fixed satellite services and is based in Luxembourg.

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