Intelsat opts for a £1.65bn float on NYSE

David Hellier
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INTELSAT Global Holdings, a provider of fixed satellite services, yesterday announced a flotation on the New York Stock Exchange that will value the group at around $2.5bn (£1.65bn).

The Luxembourg-based loss-making company is selling about 21.74m shares in a proposed initial public offering (IPO) at between $21 and $25 each.

Sources close to the group said that it considered a number of exchanges, including London, before plumping for New York.

“In the end we went for New York because we thought it offered us the opportunity to attract the broadest shareholder base,” said a source.

Intelsat, which is majority owned by private equity group BC Partners, last month reduced the size of its IPO to $750m from $1.75m. The company, which became private in July 2001, was acquired in 2008 by Serafina Acquisition, which is owned by BC Partners, Silver Lake and other investors. Intelsat assumed debt of around $3.7bn after the transaction.

For the year ended December 2012, the company posted a net loss of $151m on revenue of $2.6bn. The company intends to use substantially all of the net proceeds from the offering to repay debt.