Intelsat plans to raise up to $542.5M from IPO

NEW YORK -- Intelsat Global Holdings SA plans to raise as much as $542.5 million from its initial public offering of approximately 21.7 million shares of common stock.

The company, which provides satellite services to businesses, said in a filing with the Securities and Exchange Commission that it anticipates pricing the IPO between $21 and $25 per share. It is giving the underwriters a 30-day option to buy up to approximately 3.3 million shares to cover any excess demand.

Intelsat is also starting a public offering of 3 million preferred shares. It is giving the underwriters a 30-day option to buy up to 450,000 additional preferred shares to cover any excess demand.

The Luxemborg-based company said that it will change its name to Intelsat SA before the offerings are priced.

Intelsat plans to use substantially all net proceeds from the offerings to pay down of its outstanding debt. It also expects to use about $39.1 million to pay its sponsors a fee in connection with a monitoring fee agreement ending. The company anticipates that any remaining proceeds will be used for general corporate purposes.

In 2012, Intelsat reported revenue of $2.61 billion. Its revenue was $2.59 billion in 2011.

The shares of common stock are expected to list on the New York Stock Exchange under the "I" ticker symbol.