The $3.1 billion B-2 term loan for Intelsat Jackson broke for trading late this afternoon at 100.125/100.625, from issuance at par, according to sources. The loan due June 2019 is priced at L+275, with a 1% LIBOR floor. Bank of America Merrill Lynch, Credit Suisse, J.P. Morgan, and Morgan Stanley arranged the loan, which cleared in line with talk, but was upsized from an initial $1.75 billion, with the additional proceeds earmarked to repay nearly all of the $3.22 billion TLB due 2018. Via the refinancing, the issuer is extending its term loan maturity from April 2018 and reducing pricing from L+300, with a 1.25% floor. Alongside the term loan, the company is also putting in place a $500 million revolver maturing in July 2017, which is priced at L+275. Publicly traded Intelsat is a provider of fixed satellite services worldwide.
|Issue||$3.1 billion TLB-2|
|Call protection||six months 101 soft call|
|S&P recovery rating||1|
|Financial covenants||net-secured-leverage, interest coverage|
|Arrangers/bookrunners||BAML, CS, JPM, MS|
|Notes||Upsized from $1.75B|