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Intelsat unit plans $2B debt offering

Intelsat SA unit Intelsat Jackson Holdings plans to offer $2 billion in senior notes due 2024.

Intelsat Jackson's obligations under the notes will be guaranteed by some of its subsidiaries, which in turn would guarantee the company's obligations under its senior secured credit facilities, its 9.50% senior secured notes due 2022 and its 8.00% senior secured notes due 2024.

Additionally, Intelsat, Intelsat Investment Holdings Sàrl, Intelsat Holdings SA, Intelsat Investments SA, Intelsat (Luxembourg) SA and Intelsat Connect Finance, which are either direct or indirect parent companies of Intelsat Jackson, will guarantee the notes as of their issue date.

Intelsat Jackson is also planning to launch a tender offer for its outstanding 7.25% senior notes due 2020, which is expected to close concurrently with the consummation of the offering of the $2 billion of senior notes due 2024. Consummation of the tender offer depends on the completion of the company's $2 billion note offering and the satisfaction of certain customary conditions.

Intelsat Jackson also intends to issue a conditional notice of redemption to holders of the company's 2020 senior notes, concurrent with the launch of its tender offer. The company plans to redeem all 2020 outstanding senior notes Oct. 15., which is conditional on the issuance of the $2 billion offering of senior notes due 2024.

The Intelsat SA subsidiary will allocate funds raised from the $2 billion offering of senior notes due 2024 to finance the tender offer and to fund the redemption of any 2020 senior notes that were not tendered in the tender offer. The remaining net proceeds will be used for general corporate purposes, including the redemption and/or repurchase of a portion of Intelsat Jackson's outstanding 7.50% senior notes due 2021 and/or other debt of Intelsat Jackson — through open-market purchases, tender offers or otherwise — and to pay other related fees and expenses.