LUXEMBOURG--(BUSINESS WIRE)--Jan. 5, 2017--
Intelsat S.A. (NYSE: I), operator of the world’s first Globalized
Network, powered by its leading satellite backbone, today announced the
results to-date for the private offer to exchange (the “Exchange Offer”)
certain outstanding notes issued by Intelsat (Luxembourg) S.A.
(“Intelsat Luxembourg”), as well as the anticipated early settlement
date for the Exchange Offer of January 6, 2017.
As detailed in an earlier press release issued by Intelsat S.A. on
December 20, 2016, Intelsat Luxembourg is offering to exchange its 6.75%
Senior Notes due 2018 (the “2018 Notes”) held by Eligible Holders (as
defined below) for newly issued 12.50% Senior Notes due 2024 of IntelsatLuxembourg (the “2024 Notes”), subject to the terms and conditions set
forth in the confidential offering memorandum (the “Offering
Memorandum”) relating to the Exchange Offer.
According to Global Bondholder Services Corporation, the exchange agent
and information agent for the Exchange Offer (the “Information and
Exchange Agent”), tenders from holders of approximately $403.3 million,
or 80.7%, of the aggregate principal amount of outstanding 2018 Notes
were validly received and not validly withdrawn in the Exchange Offer as
of 11:59 p.m., New York City time, on January 4, 2017 (the “Early
Intelsat Luxembourg expects that all of the 2018 Notes that were validly
tendered and not validly withdrawn in the Exchange Offer prior to the
Early Delivery Time will be purchased by Intelsat Luxembourg on January
6, 2017 (the “Early Settlement Date”). Intelsat Luxembourg expects that
the conditions to the Exchange Offer will be satisfied or waived as of
the Early Settlement Date.
Pursuant to its terms, the Exchange Offer will remain open until 11:59
p.m., New York City time, on January 19, 2017, unless extended or
earlier terminated by Intelsat Luxembourg (such time, the “Expiration
Time”). To the extent any 2018 Notes are accepted for exchange following
the Early Delivery Time, the Exchange Offer will be finally settled
following the Expiration Time (the “Final Settlement Date”), which is
currently expected to be January 20, 2017.
The withdrawal deadline has passed, and holders of 2018 Notes may no
longer withdraw 2018 Notes tendered in the Exchange Offer.
For each $1,000 principal amount of 2018 Notes which were validly
tendered at or before the Early Delivery Time and not validly withdrawn
and which are accepted for exchange, Eligible Holders of 2018 Notes will
receive $1,000 principal amount of 2024 Notes. Eligible Holders whose
2018 Notes are accepted for exchange will also receive a cash payment
equal to the accrued and unpaid interest in respect of such 2018 Notes
from December 1, 2016, which is the most recent payment date, to, but
excluding, the Early Settlement Date.
Subject to applicable law and the terms set forth in the Offering
Memorandum, Intelsat Luxembourg reserves the right to waive any and all
conditions to the Exchange Offer, in whole or in part, and may do so,
subject to applicable law, without reinstating withdrawal rights. In
addition, Intelsat Luxembourg expressly reserves the right to extend or
terminate the Exchange Offer and to otherwise amend or modify the
Exchange Offer in any respect.
The 2024 Notes have not been registered under the Securities Act of
1933, as amended (the “Securities Act”), or any other applicable
securities laws and, unless so registered, the 2024 Notes may not be
offered, sold, pledged or otherwise transferred in the United States or
to or for the account or benefit of any U.S. person, except pursuant to
an exemption from the registration requirements of the Securities Act.
Intelsat Luxembourg does not intend to register the 2024 Notes under the
Securities Act or the securities laws of any other jurisdiction. The
2024 Notes are not transferable except in accordance with the
restrictions described more fully in the Offering Memorandum.
The Exchange Offer is being made, and the 2024 Notes to be issued
pursuant to the Exchange Offer are being offered and issued, only (a) in
the United States to holders of 2018 Notes who are “qualified
institutional buyers” (as defined in Rule 144A under the Securities
Act), (b) in the United States to holders of 2018 Notes not resident in
Arkansas who are institutional “accredited investors” (within the
meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act) and (c) outside the United States to holders of 2018
Notes who are persons other than U.S. persons in reliance upon
Regulation S under the Securities Act. The holders of 2018 Notes who
have certified to Intelsat Luxembourg that they are eligible to
participate in the Exchange Offer pursuant to at least one of the
foregoing conditions are referred to as “Eligible Holders.” Only
Eligible Holders are authorized to receive or review the Offering
Memorandum or participate in the Exchange Offer.
The Exchange Offer is being conducted pursuant to the Offering
Memorandum, this press release and Intelsat S.A.’s or Intelsat
Luxembourg’s other press releases related to the Exchange Offer
(collectively, the “Exchange Offer Materials”).
Questions regarding the Exchange Offer may be directed to IntelsatLuxembourg at the following email address: Attn: Investor Relations,
The complete terms and conditions of the Exchange Offer, as well as the
terms of the 2024 Notes, are set forth in the Offering Memorandum. The
Offering Memorandum will only be made available to holders who complete
an eligibility letter confirming their status as Eligible Holders.
Holders of 2018 Notes who wish to receive a copy of the eligibility
letter for the Exchange Offer may contact Global Bondholder Services
Corporation at 65 Broadway – Suite 404, New York, New York 10006, Attn:
Corporate Actions, (212) 430-3774 (for banks and brokers) or (866)
470-4200 (for all others). Holders may also obtain and complete an
electronic copy of the eligibility letter on the following website
maintained by Global Bondholder Services: http://gbsc-usa.com/eligibility/intelsat_luxembourg.
Intelsat Luxembourg is making the Exchange Offer only by, and pursuant
to, the terms of the Exchange Offer Materials. None of IntelsatLuxembourg, the Information and Exchange Agent, nor their respective
affiliates makes any recommendation as to whether Eligible Holders
should tender or refrain from tendering their 2018 Notes. Eligible
Holders must make their own decision as to whether or not to tender
their 2018 Notes, as well as with respect to the principal amount of the
2018 Notes to tender. The Exchange Offer is not being made to any
holders of 2018 Notes in any jurisdiction in which the making or
acceptance thereof would not be in compliance with the securities, blue
sky or other laws of such jurisdiction.
This press release does not constitute an offer to purchase securities
or a solicitation of an offer to sell any securities or an offer to sell
or the solicitation of an offer to purchase any new securities, nor does
it constitute an offer or solicitation in any jurisdiction in which such
offer or solicitation is unlawful.
Intelsat S.A. (NYSE: I) operates the world’s first Globalized Network,
powered by its leading satellite backbone, delivering high-quality,
cost-effective video and broadband services anywhere in the world.
Intelsat’s Globalized Network combines the world’s largest satellite
backbone with terrestrial infrastructure, managed services and an open,
interoperable architecture to enable customers to drive revenue and
reach through a new generation of network services. Thousands of
organizations serving billions of people worldwide rely on Intelsat to
provide ubiquitous broadband connectivity, multi-format video
broadcasting, secure satellite communications and seamless mobility
services. The end result is an entirely new world, one that allows us to
envision the impossible, connect without boundaries and transform the
ways in which we live.
Intelsat Safe Harbor Statement
Statements in this news release, including statements regarding the
Exchange Offer, constitute “forward-looking statements” that do not
directly or exclusively relate to historical facts. When used in this
release, the words “may,” “will,” “might,” “should,” “expect,” “plan,”
“anticipate,” “project,” “believe,” “estimate,” “predict,” “intend,”
“potential,” “outlook,” and “continue,” and the negative of these terms,
and other similar expressions are intended to identify forward-looking
statements and information.
The forward-looking statements reflect Intelsat’s intentions, plans,
expectations, anticipations, projections, estimations, predictions,
assumptions and beliefs about future events and are subject to risks,
uncertainties and other factors, many of which are outside of Intelsat’s
control. Important factors that could cause actual results to differ
materially from the expectations expressed or implied in the
forward-looking statements include known and unknown risks. Known risks
include, among others, market conditions and the risks described in
Intelsat’s annual report on Form 20-F for the year ended December 31,
2015, quarterly reports on Form 6-K for the quarters ended June 30, 2016
and September 30, 2016, and its other filings with the U.S. Securities
and Exchange Commission and risks and uncertainties related to our
ability to consummate the Exchange Offer.
Because actual results could differ materially from Intelsat’s
intentions, plans, expectations, anticipations, projections,
estimations, predictions, assumptions and beliefs about the future, you
are urged to view all forward-looking statements with caution. Intelsat
does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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Vice President, Investor Relations
and Corporate Communications
Director, Investor Relations and Corporate Communications