SoftBank's OneWeb increases Intelstat offer to $14B
May 19, 2017
Wireless Service Providers | MacLean, VA
OneWeb, the US satellite communications provider backed by SoftBank (TKO: 9984), has sweetened its takeover offer for Intelsat by giving Intelsat's bondholders a smaller discount than originally offered on their notes, a sticking point that has kept the deal from moving forward. The debt exchange offers announced at the end of February, along with a $1.7 billion SoftBank investment in the target company, were meant to reduce its debt by approximately $3.6 billion. The new deal, now valued at $14 billion rather than the $13.3 billion first proposed, amends Intelsat's debt reduction to $2.85 billion.