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Intelsat Headquarters in Washington, D.C.
Image credit: Intelsat
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[Satellite TODAY 05-23-13] Intelsat has announced that its subsidiary, Intelsat Jackson Holdings plans to offer $2 billion aggregate principal amount of senior notes due in 2023.
In addition, Intelsat Jackson intends to offer $635 million aggregate principal amount of its 65/8 percent senior notes due in 2022. The 2022 notes will be issued under the same indenture as Intelsat Jackson’s existing 65/8 percent senior notes due in 2022. Certain of Intelsat Jackson’s parent companies will guarantee the company’s obligations under the 2022 notes. Intelsat Jackson’s subsidiaries, however, will not guarantee the 2022 notes, according to the release.
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, which will use such funds and other available cash to redeem all of its 11.25 percent 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.
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