Intelsat Jackson completes tender offer for 11¼% notes due 2016

By Jennifer Chiou

New York, Oct. 18 - Intelsat SA said its subsidiary Intelsat Jackson Holdings SA received overall tenders for $442,322,000 of its $603.22 million principal amount of 11¼% senior notes due 2016.

That figure is $20,000 more than the amount tendered and accepted by the early deadline.

The offer ended at midnight ET on Oct. 17.

As announced following the midnight ET Oct. 2 consent deadline, the company obtained enough consents to amend the indenture for the notes to eliminate substantially all of the restrictive covenants and events of default.

As previously reported, the company paid a total purchase price of $1,044.50 for each $1,000 principal amount of notes tendered by the consent date.

Holders who tendered their notes after the consent date received $1,014.50 per $1,000 of notes.

The company also paid accrued interest to but excluding the payment date, which was Oct. 3 for notes tendered by the consent date and Oct. 18 for those tendered after the consent date.

According to an earlier 8-K filed with the Securities and Exchange Commission, Intelsat Jackson issued a call to redeem any remaining 11¼% notes that remain outstanding at the conclusion of the tender offer. The company will redeem the notes on Nov. 2 at 103.75 plus accrued interest.

The offer and solicitation were conditioned on completion of financing for the offer as well as tenders of at least a majority of the notes outstanding by the consent date. The company issued $640 million of 6 5/8% notes due 2022, proceeds of which are slated for funding of the tender offer and may also be used to redeem the notes.

Morgan Stanley & Co. LLC (800 624-1808 or collect 212 761-1057) and Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-7249) were the joint dealer managers and joint solicitation agents. Global Bondholder Services Corp. at (866 470-3900 or collect 212 430-3774) was the information agent and the depositary.

Intelsat provides fixed satellite services and is based in Luxembourg.

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