OneWeb to merge with Intelsat
Debt-laden satellite operator Intelsat SA and OneWeb laid out plans for a mega-merger aimed at bolstering their satellite internet services, with a $1.7 billion investment boost from SoftBank.
Both the merger and the Japan-based SoftBank investment are subject to, among other conditions, successful completion of debt exchange offers to certain existing Intelsat bondholders as well as receipt of certain regulatory approvals.
The complementary strengths of Intelsat and OneWeb, combined with the investment by SoftBank, are intended to create a financially stronger company with the flexibility to aggressively pursue new growth opportunities resulting from the explosion in demand for broadband connectivity for people and devices everywhere.
The debt exchange offers, announced today, together with the proceeds of the SoftBank investment are intended to reduce Intelsat’s debt by approximately $3.6 billion, assuming the minimum level of participation in the debt exchange offers is achieved.
Intelsat operates the world’s first Globalized Network, delivering high-quality, cost-effective video and broadband services anywhere in the world.
OneWeb is building a communications network, with a constellation of Low Earth Orbit satellites that will provide connectivity to billions of people around the world.