Intelsat Said to Plan $2.6 Billion of Bonds in Two-Part Offering

Intelsat SA (I), the commercial satellite operator, plans to offer $2 billion of new 10-year bonds and $635 million added to its December 2022 notes sold last year.

The company may issue the senior notes through its Intelsat Jackson Holdings unit as soon as today, according to a person familiar with the transaction. The $640 million of 6.625 percent securities the Luxembourg-based company is adding to, initially sold in September, yielded 5.42 percent yesterday, according to data compiled by Bloomberg.

Intelsat last sold debt in March, issuing $3.5 billion in a deal that included $2 billion of 7.75 percent, eight-year notes, Bloomberg data show. The securities were quoted yesterday at 106.5 cents on the dollar for a yield of 6.68 percent, Bloomberg data show.

Proceeds will be used to pay existing debt, said the person, who asked not to be identified because terms aren’t set. Bank of America Corp., Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are managing the offering, the person said.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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