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Intelsat to Issue $2.635 Billion in Guaranteed and Unguaranteed Notes
 
  
21 May 2013


Intelsat S.A.  announced that its subsidiary, Intelsat Jackson Holdings S.A. (“Intelsat Jackson”), intends to offer $2,000,000,000 aggregate principal amount of senior notes due 2023 (the “2023 notes”). Intelsat Jackson’s obligations under the notes will be guaranteed by certain of its parent and subsidiary companies.

In addition, Intelsat Jackson intends to offer $635,000,000 aggregate principal amount of its 65/8% Senior Notes due 2022 (the “2022 notes” and together with the 2023 notes, the “notes”). The 2022 notes will be issued under the same indenture as Intelsat Jackson’s existing 65/8% 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 the notes, together with other available cash, are expected to be used by Intelsat Jackson to repay all amounts outstanding (approximately $868 million principal amount) under its two senior unsecured credit agreements.

In addition, Intelsat Jackson expects to make a dividend to Intelsat (Luxembourg) S.A., which will use such funds and other available cash to redeem all of its 11¼% Senior Notes due 2017 in its previously announced redemption on June 12, 2013. The remaining net proceeds are expected to be used to pay related fees and expenses and for general corporate purposes.