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Global satellite company Intelsat took advantage of a favourable response from bankers to its proposed $1 billion of fresh borrowing, and increased the sum to $1.25 billion.
The borrowing is made against Intelsat’s Senior Secured Notes, priced at 8 per cent, due in 2024.
The news was received favourably by debt ratings agency Moody’s, which has given the debt a B1 rating, and also taken the opportunity to take a fresh look at Intelsat’s probability of a default (to Caa3-PD from Caa2-PD) and maintains its “negative outlook” on the company.
However, Moody’s said: “[We] interpret [the fresh debt] as a step towards a more comprehensive debt restructuring that the agency presumes will include interim steps in which outstanding debts are refinanced at less than par, and which it will likely interpret as comprising limited defaults.”
The market took the news well, and Intelsat’s share price rose by 8 percent during March 21st to $2.81.
The fresh borrowings will take Intelsat’s overall debt to more than $15 billion.