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Intelsat Announces Pricing of Senior Notes in Conjunction with Refinancing Activity

20 March 2013

Intelsat S.A., announced that its subsidiary, Intelsat (Luxembourg) S.A. (“Intelsat Luxembourg”), priced $3,500.0 million aggregate principal amount of senior notes, consisting of $500.0 million aggregate principal amount of 6.75% senior notes due 2018 (the “2018 notes”), $2,000.0 million aggregate principal amount of 7.75% senior notes due 2021 (the “2021 notes”)  and $1,000.0 million aggregate principal amount  of 8.125% senior notes due 2023 (the “2023 notes” and collectively with the 2018 notes and the 2021 notes, the “notes”), in each case, at an offering price of 100%. Intelsat Luxembourg’s obligations under the notes will be guaranteed by Intelsat S.A.  The notes offering is expected to close on April 5, 2013, subject to certain conditions.
  
The net proceeds from the sale of the notes are expected to be used by Intelsat Luxembourg to redeem $915.0 million aggregate principal amount of its outstanding 11½/12½% Senior PIK Election Notes due 2017 (the “2017 PIK Notes”) on April 5, 2013 in its previously announced redemption, to redeem the remaining approximately $1,588.0 million aggregate principal amount of its outstanding 2017 PIK Notes, to redeem approximately $754.8 million aggregate principal amount of its outstanding 11¼% Senior Notes due 2017 (the “2017 Senior Notes”), to pay related fees and expenses and for general corporate purposes, which may include the repayment, redemption, retirement or repurchase of additional 2017 Senior Notes or other outstanding indebtedness of Intelsat Luxembourg and its subsidiaries.