Intelsat S.A. [I], announced that its subsidiary, Intelsat Jackson Holdings S.A., priced $2 billion of 5 1/2% senior notes due 2023 at an offering price of 100% and $635 million of 6 5/8% senior notes due 2022 at an offering price of 106.25%. The company predicts to close the notes offering on June 5, 2013.
The 2023 notes will be guaranteed by certain of Intelsat Jackson's parent companies and subsidiaries. The 2022 notes will be issued under the same indenture as Intelsat Jackson's existing 6 5/8% Senior Notes due 2022. Intelsat Jackson's obligations under the 2022 notes will be guaranteed by certain of its parent companies. The 2022 notes will not be guaranteed by Intelsat Jackson's subsidiaries.
The net proceeds from the sale of 2023 notes to be used by Intelsat Jackson to repay all amounts outstanding under its two senior unsecured credit agreements.
Intelsat Jackson also expects to use proceeds together with other available cash, to make a dividend to Intelsat (Luxembourg) S.A., which will use such funds to redeem 11 1/4% Senior Notes due 2017. The remaining net proceeds to be used to pay related fees and expenses and for general corporate purposes.
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