Intelsat sweetens exchange offers in bondholder dispute (updated)

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

Facing bondholder unrest that could derail a planned merger with OneWeb (SFTBY -0.8%), Intelsat (I +1.1%) has announced an amendment to the terms of its debt exchange offers.

The newest changes increase aggregate consideration on the offers, and extend their deadline from tomorrow at 5 p.m. ET to midnight on May 31.

That comes after low uptake on the previous offers: less than 1% tendered on all series offered for exchange.

Updated: Overall, the new deal reduces the haircut required on the bond from $3.6B to about $2.85B. "We're at the absolute limit on what we're prepared [to offer] for this business, and we're simply not willing to negotiate any further," SoftBank CFO Alok Sama says.