Intelsat: Embrace The Market Overreaction And Buy Into One Of The Best Business Models Around
The Prudent Analyst • 36 Comments
The Prudent Analyst • 36 Comments
Intelsat: Reward Outweigh The Risks
Darspal S Mann
Darspal S Mann
Mon, Nov. 28, 3:13 PM
Sun, Nov. 20, 4:30 AM
- "Given the outcome of the congressional election and learning more specifically who is (and isn’t) involved as space advisers, I anticipate a larger appetite for a change agenda and a better than expected potential to get at least some of their agenda accomplished," Lori Garver, former No.2 at NASA writes.
- Expected areas of change: i) NASA’s bureaucracy/infrastructure is much too large and expensive. ii) NASA shouldn’t be spending so much money on Earth sciences. iii) The Moon is a better and more important destination than Mars. iv) Entrepreneurial space should play a larger role in all aspects of space. v) Space activities cut across international, civil, military and commercial arenas and should be run out of the White House, by a National Space Council, reporting to Vice President Pence.
- She also takes a few parting shots at the departing administration: "NASA Administrator Charlie Bolden’s perceived lack of enthusiastic support of the White House agenda gave an opening to the opposition. Without a willingness to take on these special interests, the administration made a Faustian bargain to secure congressional support for Earth sciences, technology and commercial crew, in exchange for support of developing a large expendable rocket (the Space Launch System or SLS) and deep space capsule (Orion) for human spaceflight. While these parochial interests still exist, a Trump White House has the opportunity to more effectively defend its own agenda."
- Stocks potentially impacted: AVAV, B, BA, GLOB, HON, I, JEC, LMT, OTCPK:MDDWF, MOG.A, OA, SAIC, SPACE, T
Thu, Nov. 17, 8:16 PM
- Intelsat (I +1%) has signed up in-flight connectivity provider Gogo (GOGO -0.8%) for service on the Intelsat 29e satellite, the companies said today.
- The move should allow Gogo to offer improved Wi-Fi for passengers as it taps high-throughput service from Intelsat's first "Epic" network satellite.
- Intelsat 29e will provide bridge service until Intelsat 32e becomes operational next year. Overall, coverage from Intelsat will include connectivity provided by Intelsat 32e, Intelsat 33e and Horizons 3e.
Tue, Nov. 15, 10:43 AM
- Intelsat (I +0.7%) has signed an extension with Monaco-based VSAT service provider Sonema to support enterprise networks in Africa.
- Sonema will integrate C-band connectivity from Intelsat 33e along with existing support from Intelsat 14 and Intelsat 904 in order to cover more remote regions of the continent. Sonema supports more than 650 VSAT sites in the banking and financial industry in Africa.
- Intelsat also said Telecom Egypt reaffirmed its commitment with a multi-year deal to use Intelsat 10-02 for VSAT service in Egypt.
Thu, Oct. 27, 6:36 AM
Wed, Oct. 26, 5:30 PM
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Mon, Oct. 24, 5:14 PM
- Intelsat (NYSE:I) will distribute TV programming for Nine Network Australia (OTC:NNMTF), one of the country's top-rated commercial TV networks, via a new contract extending well into the 2020s.
- The company will also provide satellite and fiber connectivity to get content from from around to world into Australia, along with distributing programming to the company's six domestic stations.
- The two had an existing relationship as Intelsat did occasional-use work for NNA, including services for the 2016 Olympics in Rio de Janeiro.
- Intelsat will initially provide service with the Ku-band beam on Intelsat 19.
Wed, Oct. 12, 3:01 PM
Wed, Oct. 12, 10:51 AM
- Egon Durban and Simon Patterson -- two boardmembers at Intelsat (I -2.8%) from Silver Lake Partners -- will leave the board at the end of the year.
- Durban, a Silver Lake managing partner and managing director, had joined the board in February 2008, when Silver Lake and BC Partners bought the company. Patterson had joined the board in 2012.
- But the two say “We remain committed to our investment in Intelsat and while we are leaving the board, we will continue to support Intelsat’s management team as it advances its business.” Silver Lake and affiliates hold about 12% of outstanding common shares.
- After the moves, the board will be left with seven directors (two from BC Partners, Intelsat's chairman and CEO, and three independent directors).
Wed, Sep. 28, 3:00 PM
Tue, Sep. 13, 7:44 PM
- A bond exchange for Intelsat (I +2.1%) got nearly all the bonds it was seeking in a debt swap: $141.4M worth.
- That's 99.7% of the outstanding bonds in what was a $141.8M offer. Up until yesterday, it had offered $120 in cash $705 in 8% notes due 2024 for each $1,000 worth of 6.625% notes due December 2022.
- Shares tumbled after the company announced the bond exchange offer Aug. 30.
- The offer's open until Sept. 26, though few bonds remain unexchanged. Intelsat is also paying $65 for agreements to amend the 2022 bond indenture.
- After hours: I +2.1%.
Fri, Sep. 9, 5:23 PM
- Intelsat (NYSE:I) has delayed its in-service date for its Intelsat 33e satellite, noting a malfunction in the primary thruster used for orbit raising.
- The satellite will now be in service during Q1 2017, delayed from Q4 2016.
- The company successfully launched 33e, the second of its EpicNG high-throughput satellites, on Aug. 24. But it's undergoing an extended orbit-raising mission, meaning the satellite will arrive for In Orbit Testing in December.
- Intelsat's working with Boeing (NYSE:BA), the satellite manufacturer, to determine the cause of the malfunction.
Fri, Sep. 2, 3:00 PM
Tue, Aug. 30, 3:57 PM
- Intelsat (NYSE:I) has slid 9.3% today on relatively heavy volume after it set up a $141.8M bond exchange, another attempt to cut heavy debt that piled up through leveraged buyouts.
- The company's offering $120 in cash ($100 after Sept. 12) and $705 in 8% notes due 2024 for each $1,000 of its existing 6.625% notes due December 2022, and it says it's seeing participation from holders of $78.4M of the old notes.
- That means a premium for investors, but also the chance for Intelsat to strip bond covenants.
- The exchange offer expires Sept. 26.
Tue, Aug. 30, 3:00 PM
Mon, Aug. 29, 3:00 PM