Intelsat IPO Expected to Raise as High as US $823 Million

Luxembourg, April 3, 2013 – After months of eager anticipation, Intelsat Global Holdings S.A has finally announced details of its initial public offering this year. Intelsat said it was offering 21.74 million common shares and 3 million Series A mandatory convertible junior non-voting preferred shares in its IPO. 

Intelsat has granted the underwriters a 30-day option to purchase an additional 3,260,869 common shares and an additional 450,000 preferred shares. 

Analysts say the common shares, likely to be priced between $21 and $25 per share, and the 3 million preferred shares priced at $50 each, could raise around $543 million in fresh capital. But if the demand is good and the underwriters sell the additional common and preferred shares, Intelsat could raise as much as $823 million.

Goldman Sachs, JP Morgan, Morgan Stanley and Bank of America Merrill Lynch are the issue’s underwriters.

Intelsat generated revenues of US $2.6 billion in 2012 and a net loss of just under $147 million. But its debt burden, at $16 billion, is considerable, and much larger than its peers. It is expected that the company will use the funds raised from to reduce its debt.

Intelsat has been delivering satellite services worldwide for over 45 years. It has a fleet of over 50 satellites, covering 99% of the earth’s populated regions. Private equity firm BC Partners owns 76 percent of the company, and Silver Lake Partners owns another 17 percent.