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Intelsat, OneWeb merger facing challenges

Intelsat is reportedly extending the timetable deadline for bondholders to accept the proposals of a proposed merger with giant satellite constellation OneWeb.

Reuters reports that the merger – announced back in February – is conditional on gaining approval from at least 85 per cent of the face value held by Intelsat’s bondholders.

The report suggest that at least some of that debt is still trading above the price Intelsat is offering on the debt exchanges, suggesting that some bondholders are holding out a better offer.

A meeting is taking place today (April 21st) in an attempt to hammer out better terms, although Reuters states that Japan’s SoftBank, which in essence is backing the merger, is reluctant to pay more.  The proposed new deadline for bondholder acceptance is said to be slipping to mid-May.

The merger deal would see Intelsat’s current $15 billion of debt reduced by about $3.6 billion.

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