Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Intelsat: Evolution Of Capital Structure Presents Opportunity For Preferred Equity

lntelsat S.A. (NYSE:I) (I.PA) ("Intelsat" or "the company") was founded in 1965 and operates the world's largest satellite services business (by revenue), providing a critical layer in the global communications infrastructure and is based in Luxembourg [1]. The company recently completed an IPO, raising $347 million selling 19.3 million common shares at $18 apiece. However, the deal was priced below its initially proposed range of $21 - $25 a share. Concurrent with the common stock offering, 3.45 million Series A mandatory convertible junior non-voting shares ("Series A preferred shares" or "the preferred shares") were sold [2]. According to the 2013 Q2 earnings report, management used the IPO proceeds to pay down debt, which now...

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