Intelsat is likely to pass on the "B" loan market for the financing backing the $1.1 billion acquisition of Loral Space and Communications domestic communications satellites. A banker said Intelsat was planning a secured $1.1 billion "B" loan, but will move ahead with an unsecured high-grade bond deal instead, if the sale is approved. The firm is still likely to tap the bank market though for a $300 million revolver and a $300 million term loan. A $200 million, delayed-draw term loan to finance repayment of bonds next year is also part of the package, according to a banker. BNP Paribas and Citigroup are slated to lead the financing.
Bankers either declined comment or could not be reached by press time. Officials from Intelsat also did not return calls for comment. Intelsat has won an auction for the domestic communications satellites with an offer to pay $1.1 billion for the fleet and to place an order for a new satellite from Loral's manufacturing arm. Intelsat will pay an additional $100 million as a down payment for the new satellite.