Intelsat taps the debt market again
October 3, 2018
By Chris Forrester
Intelsat is again talking to the market about raising another $700 million of borrowings.
The borrowings are set to be repaid on (or before) 2024, and are priced at 8.5 per cent and to be sold to investors at an issue price of 100.75 per cent of par plus accrued interest from September 19th 2018.
Intelsat says that it intends to use the net proceeds from the sale of the Notes to fund the repurchase or redemption of all of Intelsat Jackson’s outstanding 7.5 per cent Senior Notes due 2021 (the “2021 Senior Notes”) which are not earlier redeemed or repurchased, and expects to discharge the 2021 Senior Notes in full.
This offer will close on October 16th.
Its last major financial movement (a ‘Tender’ offering) was also used to repay older debt obligations, was in mid-September, and for $1.7 billion.