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Intelsat SA (NYSE:I)’s Tender Offer Announced For Luxembourg Subsidiary

Integrated satellite solutions provider Intelsat SA (NYSE:I) has disclosed that Intelsat Connect Finance, its indirect subsidiary, will start a cash tender offer with a view to purchasing all the outstanding senior notes that are due this year that were issued by its Luxembourg-based subsidiary and the direct parent company of Intelsat Connect Finance.

In order for the notes to be accepted and paid for certain conditions must be met before the expiration date. The offer will expire this year on March 30 at midnight. Intelsat has retained Global Bondholder Services Corporation as the offer’s depositary and information agent.

Financial report

The cash tender offer by Intelsat comes in the wake of the satellite solutions provider announcing its full-year results as well as quarterly results. For the quarter which ended at the close of last year Intelsat incurred a loss of $90 million. Total revenues for the quarter reached a figure of $538.1 million and this was a decline of 2% compared to a similar quarter a year ago.

The quarter also saw EBITDA reach a figure of $409.1 million while Adjusted EBITDA came in at $416.4 million which was 77% of revenues. Revenues for the full year came in at $2,148.6 million and this was a decline of 2% compared to the previous year while the net loss was $178.7 million. EBITDA for the full year was $1,629.0 million while the Adjusted EBITDA was $1,664.6 million.

Solid foundation

“Our business results, combined with the successful extension of our $3.1 billion secured term loan maturity to 2023 and 2024, provide a solid foundation as we implement our 2018 business plan,” Intelsat’s Chief Executive Officer, Stephen Spengler, said.

Revenues generated from Intelsat’s network services reached a figure of $212.2 million for the quarter which ended at the close of last year. This was a decline of 4% compared to a similar quarter which ended 12 months prior. Total revenues from network services for the year came in at $851.6 million and this was a decline of 5% vis-à-vis the year that closed on December 31, 2016.

This year Intelsat intends to launch two satellites – Intelsat 38 which will be unveiled in the quarter that will begin on April 1 and Horizons 3e which is set to go live in this year’s second half.

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