Intelsat planning more cash-raising?

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Intelsat issued a “Shelf Registration Statement” with the Securities & Exchange Commission last week, along with an updated prospectus.

There was no specific amount mentioned, or any clue as to when (or if) the document will be effective.

Intelsat, within the filing, says it “may” use the prospectus to offer “from time to time” new common shares. “We will use the net proceeds we receive from the sale of the common shares covered by this prospectus for general corporate purposes, which may include repayment of debt, acquisitions, capital expenditures and working capital,” said Intelsat.

The past few weeks have seen Intelsat’s share price perform somewhat erratically in a volatile market, rising significantly on some days and tumbling just as dramatically a day later.

Intelsat has been busy restructuring its borrowings and debts for a couple of years, and it is expected that any cash raised by the issuing of new shares would be used to reduce existing borrowings.  But Intelsat’s shares have risen four-fold since April 3rd, amid shareholder enthusiasm and expectations that Intelsat would gain significantly from a restructuring of its C-band spectrum over the US.


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