Intelsat’s upcoming IPO terms have been unveiled. While originally Intelsat talked about raising $1.5 billion, and then reduced its expectations to $750 million, the actual target amount falls somewhere between the two.
Intelsat will sell off 21.74 million shares at $25 a share, plus another 3 million convertible non-voting preferred shares priced at $50 each. The IPO’s underwriters also have an additional 3.26 million ordinary shares plus an extra 450,000 preferred shares that they can sell if the demand exists.
Add that lot up and the total sum will be $823 million if all the stock is sold, or $543 million if only the initial issue sells. Goldman Sachs, JP Morgan, Morgan Stanley and Bank of America Merrill Lynch are the issue’s underwriters. At the end of the day the shares will be listed on the New York Stock Exchange.
Intelsat’s debt burden is considerable, and much larger than its peers. Currently its debt stands at almost $16 billion. Revenues last year were $2.6 billion. Currently private equity firm BC Partners owns 76 per cent of the company, and Silver Lake Partners owns 17 per cent.
The cash raised by the IPO will be used to reduce debt.