EU approves Allianz Intelsat control
January 25, 2022
By Chris Forrester
Intelsat is in the process of exiting its Chapter 11 bankruptcy reconstruction. It has organised its post-bankruptcy financing and German financial services giant Allianz will be very much in control of Intelsat.
The European Commission approved on January 24th the control of Intelsat Holdings SA by Allianz SE and has given the green light to Allianz control saying that it does not pose conflicts of jurisdiction or raise competition concerns “given the absence of horizontal overlaps or vertical relationships between the companies’ activities”. The process was examined under the EC’s ‘simplified merger review’ procedure.
Allianz is financing Intelsat’s new business to the tune of some $7.875 billion.
The new financing structure, however, is extremely complex, and not helped by the assorted Intelsat sister companies. For example, the new structure of Intelsat License LLC., based in Luxembourg has at its core PIMCO (Pacific Investment Management Company LLC), a Delaware limited liability company which serves as the manager or investment adviser for a number of investment funds and other investment vehicles that each will hold (post-emergence) less than 10 per cent voting and non-voting equity interests in New Intelsat. The aggregate total of the voting and non-voting equity interests in New Intelsat by the PIMCO-managed funds will be approximately 32.8 per cent. Allianz Asset Management of America L.P., a Delaware limited partnership, holds 79.1 per cent of the non-voting equity interest and 100 per cent of the voting equity interest in PIMCO, according to Intelsat.
Allianz Asset Management US Holding II LLC, a Delaware limited liability company, holds 2.4 per cent of the non-voting equity interest in PIMCO. Allianz Asset Management of America LLC, a Delaware limited liability company, holds 11.6 per cent of the non-voting equity interest in PIMCO and is also the General Partner of Allianz Asset Management of America L.P., a Delaware limited partnership, holding 99.9 per cent of its non-voting equity interest and 100 per cent of its voting equity interest. Other investors hold less than 10 per cent of the equity interests in PIMCO, says Intelsat.
The New Intelsat shareholders of Intelsat License LLC are, in essence, made up of various Allianz controlled entities including PIMCO, Allianz Asset Management of America LLC, Allianz Asset Management of America LP, Munich-based Allianz Asset Management GmbH, Allianz SE, Allianz Asset Management of America Holdings, Inc., Allianz of America, Inc., and Netherlands-based Allianz Europe BV.