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Intelsat Announces Proposed Offering of Senior Notes

21 March 2011

Intelsat S.A. today announced that its subsidiary, Intelsat Jackson Holdings S.A. (“Intelsat Jackson”), intends to offer $2.65 billion aggregate principal amount of senior notes, consisting of senior notes due 2019, senior notes due 2021 and senior notes due 2023 (the “notes”).
  
Intelsat Jackson’s obligations under the notes will be guaranteed by certain of its parent and subsidiary companies. Part of the net proceeds from the sale of the notes are expected to be contributed or loaned to Intelsat Jackson’s direct subsidiary, Intelsat Intermediate Holding Company S.A. (“Intermediate Holdco”), which will use such funds and cash on hand to purchase any and all of its outstanding $481.0 million aggregate principal amount at maturity of 9 1/2 % Senior Discount Notes due 2015 that are validly tendered in connection with Intermediate Holdco’s tender offer and consent solicitation announced today and to pay related fees and expenses.
  
In addition, part of the net proceeds from the sale of the notes are expected to be contributed or loaned to Intelsat Jackson’s indirect subsidiary, Intelsat Subsidiary Holding Company S.A. (“Intelsat Sub Holdco”), which will use such funds and cash on hand to purchase any and all of its outstanding $625.3 million aggregate principal amount of 8 1/2% Senior Notes due 2013, any and all of its outstanding $681.0 million aggregate principal amount of 8 7/8% Senior Notes due 2015 and any and all of its outstanding $400.0 million aggregate principal amount of 8 7/8 % Senior Notes due 2015, Series B, in each case, that are validly tendered in connection with Intelsat Sub Holdco’s tender offers and consent solicitations announced today and to pay related fees and expenses. 
  
The remainder of the net proceeds from the sale of the notes are expected to be used by Intelsat Jackson to purchase any and all of its outstanding $55.0 million aggregate principal amount of 9 1/4% Senior Notes due 2016 and any and all of its outstanding $284.6 million aggregate principal amount of 11 1/2 % Senior Notes due 2016, in each case, that are validly tendered in connection with Intelsat Jackson’s tender offers and consent solicitations announced today, and for general corporate purposes, which could include the repayment, redemption, retirement or repurchase in the open market of other indebtedness of Intelsat S.A. or its subsidiaries (which indebtedness has not yet been identified). 
 
The consummation of the offering of the notes is conditioned upon receiving the requisite amount of irrevocable tenders and consents pursuant to each of the tender offers described above.