Intelsat Said to Increase Loan to $3.1 Billion to Refinance DebtChristine Idzelis
Intelsat SA, the commercial-satellite operator that went public in April, increased the size of a loan it’s seeking by 77 percent to $3.1 billion, according to a person with knowledge of the transaction.
The company originally asked lenders for a $1.75 billion term loan to refinance a portion of bank debt due in 2018, said the person, who asked not to be identified because terms aren’t set. Bank of America Corp. is arranging the deal.
Luxembourg-based Intelsat has a $3.2 billion term loan that matures in April 2018, according to data compiled by Bloomberg. The satellite operator is also seeking a $500 million revolving credit line, the person said.
Unprecedented demand for leveraged loans this year has helped companies borrow a record $582.9 billion of the junk-grade debt from non-bank lenders. Investors have poured almost $60 billion into loan funds, tripling the previous peak of $17.9 billion in 2010, according to JPMorgan Chase & Co.
Under a revolver, money can be borrowed again once it’s repaid; in a term loan, it can’t.