Satmex Signs Exit Financing

Mexico’s Satmex says it has entered into a commitment letter with Jefferies for $325m in exit financing to help fund a payout to bondholders in a restructuring. The bankruptcy reorganization plan, accepted by more than 66% of holders of the satellite operator’s 2013 bonds last month, will also count on a $96.25m equity rights offering to the bondholders. In the prepackaged reorganization plan to be filed in a US bankruptcy court, Satmex plans to pay holders of its 2011 bonds at par plus accrued interest. Also, holders of the 2013s would receive their pro rata share of a pool of equity interests in the indirect parent of reorganized Satmex and the equity rights, but only to the extent that holders have exercised their primary rights. Alternatively, 2013 holders may elect to receive a cash payment of 38 cents per dollar. A Satmex official declines to comment on the nature or timing of the debt financing or on the timing of the equity transaction. Proceeds of the exit financing and rights offering will also be used to fund completion of Satmex 8, a satellite scheduled to be launched in 2012 to replace the Satmex 5 satellite. Lazard is advising Satmex. Bondholders rejected a takeover bid for the troubled communications company worth up to $375m last year from EchoStar and MVS Comunicaciones.