International law firm Milbank, Tweed, Hadley & McCloy LLP, led by Securities partner Arnold Peinado, acted as special New York counsel to Goldman, Sachs & Co., Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC in connection with a $3.5 billion offering of high yield notes by Intelsat (Luxembourg) S.A. (“Intelsat Luxembourg”). Intelsat Luxembourg’s obligations under the notes are guaranteed by Intelsat S.A.
The offering is tied for the largest deal in the US high yield market to date in 2013 and is one of the largest high yield deals globally in 2013. The offering consisted of three series of notes: $500 million aggregate principal amount of 6¾% senior notes due 2018, $2 billion aggregate principal amount of 7¾% senior notes due 2021 and $1 billion aggregate principal amount of 8⅛% senior notes due 2023. The notes were offered pursuant to Rule 144A and Regulation S.
The net proceeds from the sale of the notes are expected to be used by Intelsat Luxembourg to redeem all of its $2.5 billion of 11½/12½% Senior PIK Election Notes due 2017, to redeem approximately $755 million aggregate principal amount of its outstanding 11¼% Senior Notes due 2017, to pay related fees and expenses and for general corporate purposes, which may include the repayment, redemption, retirement or repurchase of other outstanding indebtedness of Intelsat Luxembourg and its subsidiaries.
The Milbank attorneys involved in the offering included Transportation & Space partners Peter Nesgos and Dara Panahy, Tax partner Andrew Walker, Securities associates Kevin MacLeod, Michael Lee and Megha Shah, Transportation & Space associates Alexis Sáinz and David Levine and Tax associate Lysondra Ludwig.
