Satmex Exits Bankruptcy

On the back of last Month’s $325m bond sale, Satmex has officially emerged from bankruptcy, it says. Under the Mexican communication company’s prepackaged plan, Satmex’s used proceeds from the new bond sale, now its only outstanding indebtedness, to repay 2011 bondholders in full. The remaining net proceeds from the sale and the proceeds of a completed $96.25m equity rights offering to holders of Satmex’s 2013 bonds will be used to fund the completion of the Satmex 8 satellite. If all goes according to plan for the twice-bankrupt satellite operator, Satmex 8 will be launched in 2012 to replace the Satmex 5 satellite. Said to capitalize on US high-yield dedicated investor interest, the 9.50% 2017 NC3 bond received more than $2.5bn in orders from 150 accounts in the sale held the first week of May. Jeffries managed the bond sale. Lazard and Alfaro, Davila y Rios served as financial advisors to Satmex. Satmex had previously entered bankruptcy protection in 2006.