SoftBank Group Corp.'s OneWeb satellite tech unit and Intelsat S.A. are set to terminate their merger and related share purchase agreement on June 2.

"There were many stakeholders' interests that needed to be satisfied in this complex transaction," Intelsat CEO Stephen Spengler said in a June 1 statement. "We are disappointed that our bondholders were unwilling to accept the terms of the exchange offers presented over the course of this process."

Earlier this month, Intelsat extended its offer to exchange certain debt securities as the company sought to gain more support to reduce its debt load, a requirement of its planned merger with OneWeb.

The debt exchange offers by its indirect wholly owned subsidiaries Intelsat Jackson Holdings SA, Intelsat Connect Finance SA, and Intelsat (Luxembourg) SA and solicitation or solicitations of consents to amend the indentures governing the existing notes expired at midnight ET on May 31.

Spengler said the pre-existing commercial agreement among Intelsat, OneWeb and SoftBank will continue. The companies plan to develop integrated services "utilizing both of our fleets and to act as a sub-distributor to SoftBank for the attractive application segments of mobility, energy, government, and connected car."