LUXEMBOURG–(BUSINESS WIRE)–Intelsat S.A. (NYSE: I) (“Intelsat”), operator of the world’s first
Globalized Network, powered by its leading satellite backbone, announced
today that its subsidiary, Intelsat Jackson Holdings S.A. (“Intelsat
Jackson”), completed the issuance of $490 million aggregate principal
amount of 9.50% senior secured notes due 2022 (the “notes”) at an issue
price of 98%. The notes were issued in a private placement pursuant to a
purchase agreement entered into earlier today.
Intelsat Jackson’s obligations under the notes are guaranteed by
Intelsat Jackson’s direct parent company, Intelsat (Luxembourg) S.A.
(the “parent guarantor”), and certain subsidiaries (the “subsidiary
guarantors”), and are secured by a first priority security interest in,
subject to certain permitted liens, substantially all of the existing
and future assets of Intelsat Jackson and the subsidiary guarantors, and
in the case of the parent guarantor, the stock of Intelsat Jackson owned
by the parent guarantor. The security interests securing the notes are
pari passu with the security interests securing Intelsat Jackson’s
senior secured credit facility and 8.00% senior secured notes due 2024.
Further terms of the notes will be set forth in a Report on Form 6-K to
be filed by Intelsat shortly.
The net proceeds from the sale of the notes are expected to be used by
Intelsat Jackson to fund its previously announced tender offers to
purchase its 6 5⁄8% Senior Notes due 2022, 5 1⁄2% Senior Notes due 2023
and 7 1⁄2% Senior Notes due 2021.
Intelsat is pleased with the successful completion of this private
financing as it continues to progress its liability management
initiatives. As Intelsat moves to complete the tender offers, it expects
to capture value for Intelsat while reducing overall leverage, resulting
in a stronger overall financial structure, which benefits all
stakeholders. The liability management process is important to all
creditors and shareholders, and Intelsat appreciates the continued
constructive dialogue with members of the financial community as it
continues with these initiatives.
The issuance of the notes was not registered under the Securities Act of
1933, as amended, and the notes may not be resold absent registration or
an applicable exemption from registration requirements. This press
release does not constitute an offer to purchase securities or a
solicitation of an offer to sell any securities or an offer to sell or
the solicitation of an offer to purchase any new securities, nor does it
constitute an offer or solicitation in any jurisdiction in which such
offer or solicitation is unlawful.
Intelsat S.A. (NYSE: I) operates the world’s first Globalized Network,
delivering high-quality, cost-effective video and broadband services
anywhere in the world. Intelsat’s Globalized Network combines the
world’s largest satellite backbone with terrestrial infrastructure,
managed services and an open, interoperable architecture to enable
customers to drive revenue and reach through a new generation of network
services. Thousands of organizations serving billions of people
worldwide rely on Intelsat to provide ubiquitous broadband connectivity,
multi-format video broadcasting, secure satellite communications and
seamless mobility services. The end result is an entirely new world, one
that allows us to envision the impossible, connect without boundaries
and transform the ways in which we live.
Intelsat Safe Harbor Statement:
Statements in this news release, including statements regarding the
tender offers, constitute “forward-looking statements” that do not
directly or exclusively relate to historical facts. When used in this
release, the words “may,” “will,” “might,” “should,” “expect,” “plan,”
“anticipate,” “project,” “believe,” “estimate,” “predict,” “intend,”
“potential,” “outlook,” and “continue,” and the negative of these terms,
and other similar expressions are intended to identify forward-looking
statements and information.
The forward-looking statements reflect Intelsat’s intentions, plans,
expectations, assumptions and beliefs about future events and are
subject to risks, uncertainties and other factors, many of which are
outside of Intelsat’s control. Important factors that could cause actual
results to differ materially from the expectations expressed or implied
in the forward-looking statements include known and unknown risks. Known
risks include, among others, market conditions and the risks described
in Intelsat’s annual report on Form 20-F for the year ended December 31,
2015, and its other filings with the U.S. Securities and Exchange
Commission and risks and uncertainties related to our ability to
consummate the tender offers.
Because actual results could differ materially from Intelsat’s
intentions, plans, expectations, assumptions and beliefs about the
future, you are urged to view all forward-looking statements with
caution. Intelsat does not undertake any obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
Vice President, Investor Relations
and Corporate Communications
Director, Investor Relations and Corporate Communications