Intelsat announces early results of three subsidiaries' tender offers

By Marisa Wong

Madison, Wis., April 5 - Intelsat SA announced the preliminary results of the independent tender offers and consent solicitations of three of its subsidiaries that began on March 21.

As previously reported, the subsidiaries received sufficient consents as of April 1 to amend the indentures of their notes to eliminate substantially all of the restrictive covenants, some events of default and other provisions.

The subsidiaries also extended the consent deadline to 5 p.m. ET on April 4 from 5 p.m. ET on April 1.

Intelsat Jackson Holdings SA offered 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.

As of the consent deadline, Intelsat Jackson had received tenders for $54,169,000 of the 9¼% notes and tenders for $281,875,000 of the 11½% notes.

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 Jackson paid $59,106,173 in total consideration for the 9¼% notes tendered so far and $313,915,418 in total consideration for the 11½% notes.

Intelsat Intermediate Holding Co. SA offered to purchase its $481.02 million principal amount at maturity of 9½% senior discount notes due 2015.

As of the consent deadline, Intelsat Intermediate had received tenders for $322,849,000 of the 9½% notes.

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

Intelsat Intermediate paid $339,333,311 in total consideration for the 9½% notes tendered so far.

Intelsat Subsidiary Holding Co. SA offered 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.

As of the consent deadline, Intelsat Subsidiary had received tenders for $375,815,000 of the 8½% notes, $457,224,000 of the 8 7/8% notes and $315,368,000 of the 8 7/8% series B notes.

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.

Intelsat Subsidiary paid $383,853,265 in total consideration for the 8½% notes, $480,909,219 in total consideration for the 8 7/8% notes and $331,704,763 in total consideration for the 8 7/8% series B notes tendered so far.

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 the consent deadline.

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

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.

The companies plan to redeem any notes that remain outstanding on May 5.

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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