PanAmSat  To Commence Financing Transactions After KKR Purchase

 
PanAmSat's Atlanta Operations Center (Panamsat photo)
WILTON, Conn./July 14/Satnews/ -- PanAmSat Corp. said it will issue new senior secured and unsecured debt facilities with $2.6 billion of term loans and a $250 million revolving credit facility. It will also issue $1.01 billion in senior unsecured notes and hold about $275 million of existing senior secured notes.

The financial transactions, PanAmSat said in a company statement, it will commence at the same time with the satellite company's sale to affiliates of Kohlberg Kravis Roberts & Co., The Carlyle Group and Providence Equity Partners, Inc. It will also leave the company with about $4.2 billion in debt.

As part of its debt repayment, PanAmSat said it has also made a cash tender offer to purchase $800 million in 8.5 percent senior bonds due 2012.

In April, KKR agreed to buy PanAmSat for $3.55 billion cash. KKR later brought in two other buyout firms, Providence Equity and Carlyle Group, each of which will hold about 27 percent of the company when the deal is complete.

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