Reuters: Intelsat/OneWeb debt exchange to get several weeks more

|About: Intelsat SA (I)|By:, SA News Editor

Working to keep a merger with OneWeb alive and satisfy holdout bondholders, Intelsat (I -2.1%) is planning to extend a deadline on its debt exchange by several weeks, Reuters reports.

A deadline from last night will go out to at least mid-May, the report says.

SoftBank (SFTBY +0.2%) moved to merge OneWeb with Intelsat in February in a deal contingent on bondholder approval that would help cut $3.6B from Intelsat's $15B in debt.

But some of the debt is trading above the deal's exchange price, and SoftBank may be reluctant to sweeten that deal.

Holders of at least 85% of the face value of each series need to agree to the exchange to consummate the deal.