[SatNews] Intelsat S.A. has announced that its subsidiary, Intelsat Jackson Holdings S.A. (“Intelsat Jackson”), entered into a senior secured credit agreement that provides for a term loan facility of $3,250,000,000 and a revolving credit facility of up to $500,000,000.

Intelsat Jackson has borrowed the full amount of the term loan facility for refinancing and the other purposes described below. Part of the net proceeds of the new term loan have been contributed or loaned to Intelsat Jackson’s indirect subsidiary, Intelsat Corporation (“Intelsat Corp”), which has used such funds to repay all existing indebtedness under Intelsat Corp’s existing senior secured credit facilities, including approximately $1.8 billion of term loans, and to redeem all of the $580.7 million aggregate principal amount outstanding of Intelsat Corp’s 9¼ percent Senior Notes due 2016. In connection with such repayment and redemption of Intelsat Corp’s indebtedness,

Intelsat Corp intends to cease filing annual and quarterly periodic reports with the U.S. Securities and Exchange Commission, effective immediately. In addition, Intelsat Jackson has contributed approximately $330.2 million of the net proceeds of the new term loan to Intelsat Jackson’s indirect subsidiary, Intelsat Subsidiary Holding Company S.A. (“Intelsat Sub Holdco”), to repay all existing indebtedness under Intelsat Sub Holdco’s existing senior secured credit facilities. Intelsat expects to use the remainder of the net proceeds from the new term loan primarily to repay, redeem, retire or repurchase in the open market other indebtedness of Intelsat S.A. and its subsidiaries (which indebtedness has not yet been identified). In addition, Intelsat Corp expects to redeem all of the approximately $111.8 million aggregate principal amount outstanding of Intelsat Corp’s 9¼ percent Senior Notes due 2014, as previously announced, on January 20, 2011. In connection with these refinancings, Intelsat has effectively combined the assets of Intelsat Sub Holdco and Intelsat Corp. Intelsat believes that this reorganization of assets will simplify Intelsat’s operations and enhance its ability to transact business in an efficient manner.