Intelsat (I) continues to amend and extend a debt swap offer simultaneously with its acquisition of WorldVu Satellites, also known as OneWeb. If completed, the exchange could take $3.6 billion of Intelsat's $14.2 billion in debt off the books. SoftBank Group will support the exchange by raising $1.79 billion in a preferred stock offering.
Debt involved includes notes issued by Intelsat subsidiaries Intelsat Jackson, ICF and Intelsat Luxembourg.
The original April 20 deadline has been extended repeatedly to May 15, May 17 and most recently to May 31. The exchange is conditioned on participation by 85% of each class of noteholders, and as of May 17 less than 1% of each class had shown interest.
Luxembourg-based Intelsat is a fixed satellite operator offering services in the areas of media, telecommunications, data transfer and government communications. The company's new Epic platform is designed to complement its legacy services through the use of C-, Ku- and Ka-bands, wide beams, spot beams and frequency reuse technology.
OneWeb is putting together a network of small, low-cost, low earth orbit (LEO) satellites scheduled for initial launch next year and a full launch in 2019.
Intelsat is pushing the combination as a way to create global, pole-to-pole, high-throughput satellite broadband network and reduce leverage.
At the end of the March quarter, funds advised by BC Partners and Silver Lake held about 65% of the company's equity.
The acquisition has already seen some bumps in the road. When SoftBank revealed plans to buy Intelsat stock for $5 per share, the share price lost over 30% in one day in February. The current plan calls for SoftBank to invest at $4.75 per share.