Intelsat is raising $1 billion in fresh borrowing (via Senior Secured Notes) and due for repayment in 2024. The company already has some $14 billion in debt obligations.

The terms of the debt offering have not been revealed as yet.

The new cash is being raised through Intelsat’s parent company, the Luxembourg-based Intelsat Luxembourg SA, and will be guaranteed by the business.

Intelsat says the net proceeds from the sale of the notes are expected to be used by Intelsat for general corporate purposes, which may include repayment of indebtedness, capital expenditures and working capital and to pay fees and expenses related to the offering.

Back in February, the satellite operator appointed Guggenheim Securities to examine some key financing and balance sheet initiatives, and to examine the operator’s debt structure (and no doubt debt restructuring).

As at December 31st 2015, Intelsat had around $14.6 billion of debt, little changed from the previous year. During 2015, it paid more than $890 million in interest payments, out of a total revenue of about $2.45 billion.

Categories: Articles, Broadcast, Business, DTH/Satellite, Funding