Intelsat Announces Pricing of its Initial Public Offering of Common Shares and Concurrent Public Offering of Series A Mandatory Convertible Junior Non-Voting Preferred Shares
18 April 2013
Intelsat S.A. announced the pricing of its initial public offering of 19,323,672 common shares at a price of $18.00 per share and concurrent public offering of 3,000,000 Series A mandatory convertible junior non-voting preferred shares (the "Series A preferred shares") at a price of $50.00 per share. On the mandatory conversion date, May 1, 2016, each Series A preferred share, unless previously converted, will automatically convert into common shares. The Series A preferred shares will have a 5.75% dividend rate and a liquidation preference of $50.00 per share. The Company has granted the underwriters in the initial public offering of common shares a 30-day option to purchase up to an additional 2,898,550 common shares. The Company has granted the underwriters in the public offering of Series A preferred shares a 30-day option to purchase up to an additional 450,000 Series A preferred shares. The Company's common shares will be listed on the New York Stock Exchange under the symbol "I" and its Series A preferred shares will be listed on the New York Stock Exchange under the symbol "I PR A." The offerings are expected to close on or about April 23, 2013. The closing of the offering of Series A preferred shares is conditioned upon the closing of the offering of the Company's common shares.
Total net proceeds from the offerings, after deducting the underwriting discounts and commissions and estimated offering expenses, is expected to be approximately $471.7 million. Total net proceeds from the offering of common shares, after deducting the underwriting discounts and commissions and estimated offering expenses, is expected to be approximately $328.8 million. Total net proceeds from the offering of Series A preferred shares, after deducting the underwriting discounts and commissions, is expected to be approximately $142.9 million. The Company intends to use substantially all of the net proceeds from the offerings to repay, redeem, retire or repurchase a portion of its outstanding indebtedness.