News
BC Partners completes acquisition of majority of Intelsat
Pembroke, Bermuda, 4 February 2008
Serafina Holdings, an entity formed by funds advised by BC Partners, Silver Lake Partners and certain other equity investors, has successfully completed the acquisition of Intelsat, Ltd., the world’s leading provider of fixed satellite services. The acquisition, which closes today, has been effected through the purchase for approximately $5.0 billion in cash of substantially all of the primary equity ownership of the parent, Intelsat Holdings, Ltd., which has been renamed Intelsat Global, Ltd.
Upon closing of the transaction, the current shareholders of Intelsat Holdings (other than management), including funds advised by or associated with Apax Partners Worldwide LLP, Apax Partners, L.P., Apollo Management V, L.P., MDP Global Investors Limited and Permira Advisers LLC, received approximately $4.8 billion in cash in exchange for 100 percent of their equity interests in Intelsat Holdings. Following the closing, Intelsat’s current management team will remain in place and have an equity interest in Serafina Holdings.
Immediately following the consummation of the transaction, Intelsat Bermuda assumed certain debt obligations entered into by Serafina Holdings in order to effect the transaction and refinance certain existing debt of Intelsat. The assumed debt obligations primarily include a bridge financing comprised of two tranches, $2.955 billion in cash pay notes and $2.155 in payment in kind toggle notes.
Taking into account approximately $11.15 billion of debt at September 30, 2007 and $3.85 billion in incremental debt incurred to complete the transaction, the enterprise valuation implied by the transaction is approximately $16.6 billion.
Raymond Svider, a Managing Partner at BC Partners, said: “Intelsat is a rare investment opportunity, providing revenue diversity, stability and global presence combined with attractive growth potential. We are proud to become associated with this world class management team and are looking forward to supporting them in taking the business to its next stage of development.”
Credit Suisse acted as financial advisor to Intelsat, Ltd. in connection with the transaction. Intelsat’s legal advisors included Wachtell Lipton Rosen & Katz, Milbank, Tweed, Hadley and McCoy LLP, Wiley Rein LLP, and Paul, Weiss, Rifkind, Wharton & Garrison LP. Merrill Lynch & Co. and Perella Weinberg Partners LP acted as M&A advisors, Latham & Watkins LLP as legal advisor and PricewaterhouseCoopers LLP as financial advisor to BC Partners.
About Intelsat
Intelsat is the leading provider of fixed satellite services (FSS) worldwide, serving the media, network services and government customer sectors, enabling people and businesses everywhere constant access to information and entertainment. Intelsat offers customers a greater business potential by providing them access to unrivalled resources with ease of business and peace of mind. Our services are utilized by an extensive customer base, including some of the world’s leading media and communications companies, multinational corporations, Internet service providers and government/military organizations. Real-time, constant communication with people anywhere in the world is closer, by far.
About BC Partners
BC Partners Holdings Limited is a leading international private equity firm, operating through integrated teams based in Geneva, Hamburg, London, Milan, New York and Paris. The latest fund, BCEC VIII, closed in May 2005 with €5.9 billion of commitments. For over 20 years, the firm has developed a long track record of successfully acquiring and developing businesses in partnership with management, investing in 66 acquisitions with a combined enterprise value of €61 billion. Recent investments include Brenntag, Amadeus, Dometic, Picard, SEAT Pagine Gialle and Unity Media.
Contact
BC Partners
Richard Spiegelberg
richard.spiegelberg@cardewgroup.com
+ 44 (0) 207 930 0777
+ 44 (0) 7979 804 280
Intelsat
Dianne VanBeber
dianne.vanbeber@intelsat.com
+1 202 944 7406