PanAmSat Launches Offering of Notes

WILTON, Conn./Satnews Daily/ -- PanAmSat Corp. launched last week an offer of Senior Notes maturing in 2014, expecting to raise US$1.01 billion.

Earlier this month, PanAmSat Corp. said it will also issue new senior secured and unsecured debt facilities with $2.6 billion of term loans and a $250 million revolving credit facility.

The series of financial transactions, PanAmSat said, 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.