Satellite operator Intelsat has announced the pricing of its IPO of 19,323,672 shares at a price of US$18 (€13.70) per common share, while a concurrent offering of three million series A non-voting mandatory convertible preferred shares will be priced at US$50 per share.
Intelsat expects to raise about US328.8 million net from the common shares offering and US$142.9 million from the preferred shares offering. The proceeds will be used to reduce outstanding indebtedness.
On the mandatory conversion date, May 1, 2016, each Series A preferred share, unless previously converted, will automatically convert into common shares.
The Series A preferred shares will have a 5.75% dividend rate and a liquidation preference of US$50 per share. The Company has granted the underwriters in the initial public offering of common shares a 30-day option to purchase up to an additional 2,898,550 common shares.