Space Business Review - September 2012

Author:Milbank Space Business Practice
Profession:Milbank, Tweed, Hadley & McCloy LLP

Intelsat Senior Notes Offering

On September 19, Intelsat S.A. announced the sale, through subsidiary Intelsat Jackson Holdings S.A. (Intelsat Jackson), of $640m aggregate principal amount of 65⁄8% senior notes due 2022 at an offering price of 100%. Intelsat Jackson is expected to use the net proceeds from the sale primarily for the purpose of purchasing all of its outstanding approximately $603m aggregate principal amount of 111⁄4% Senior Notes due 2016 tendered in connection with Intelsat Jackson's tender offer and consent solicitation announced on September 19.

Iridium $100m Private Offering

On September 28, Iridium Communications Inc. (Iridium) announced a private offering of1m shares of 7% Series A Cumulative Perpetual Convertible Preferred Stock, with a liquidation preference of $100 per share. Holders of the preferred stock will have the option of converting each of their shares into 10.6022 shares of common stock. On or after October 3, 2017, however, Iridium may direct the conversion of any shares of the preferred stock into common stock at the then prevailing conversion rate. Iridium intends to use the net proceeds from the offering to fund the development of Iridium NEXT and for general corporate purposes.

ViaSat $300m Senior Notes Add-On

On September 27, ViaSat, Inc. (ViaSat) announced that it will issue an additional $300m in aggregate principal amount of its 67⁄8% Senior Notes due 2020, with $275m in aggregate principal amount already outstanding, at a price equal to 103.5% of face value. ViaSat intends to use the net proceeds from the offering to repurchase all of its outstanding 87⁄8% Senior Notes due 2016 and for general corporate purposes.

Japan Privatizes H-2B Launch Operations

On September 27, JAXA, Japan's space agency, announced that Mitsubishi Heavy Industries, Ltd. has assumed responsibility for future launches of Japan's H-2B launch vehicle from the Japanese government. Industry analysts believe that the privatization of H-2B operations may substantially reduce production and operating costs, thereby making H-2B a more attractive alternative – and Japan a more prominent player – in the global commercial launch services market.

September Launch Services

On September 28, Arianespace S.A. successfully launched the ASTRA 2F and GSAT-10 satellites for SES S.A. and the Indian Space Research Organisation (ISRO), respectively, on an Ariane 5 ECA launch vehicle. ASTRA 2F, manufactured by...

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