The IRAA meets annually each October for its General Assembly.
It also holds an early Summer picnic jointly with COMARA (Comsat
Alumni & Retirees Assoc.) and Intelsat staff between MAY-JUN;
late Summer Social between AUG-SEP; Winter Social between
JAN-FEB, as well as an occasional Golf Outing between AUG-SEP.
All events provide a great opportunity for old friends & former
colleagues to gather for memorable occasions of fellowship and
camaraderie.
If you are not yet a member of the IRAA and would like to join,
please
CLICK
here.
Intelsat Class
Action gathers pace
Posted: 27
January 2023
by Chris Forrester -- January
26, 2023
The long-running Class Action inside
trading allegations brought by some investors in Intelsat is coming to a
head. The action centres on allegations that Dave McGlade, then
chairman of Intelsat, in 20189, together with some major Intelsat stock
holders, sold significant portions of their holdings following a
specifric meeting between Intelsat and key officials the FCC where news
emerged that the Intelsat and SES C-band prviate auction scheme would
not be permitted by the FCC.
Back on Nov ember 4th 2022, the judge
hearing the Class Action dismissed the Plaintiffs' (Wlleye Opportunities
Master Fund, on behalf of its Class Action associates) move but allowed
them to resubmit their claim with extra detais.
Click
HERE
for
further details from
Advanced Television
Intelsat left
SES "on the hook" for C-band costs
Posted:
21 January 2023
January 20, 2023
SES has filed its response to
Intelsat's bankruptcy court, arguing that when the two parties signed
the 2018 [C-band] Consottium Agreement SES and Intelsat not only agreed
to share equally in any proceeds resulting from clearing the C-Band, but
they also agreed to share equally in expenses incurred in connection
with their efforts -- whether or not the parties realised any proceeds
from the C-Band clearing.
SES's response says that when
Intelsat repudiated the Consortium Agreement, Intelsat did not comply
with its expense reimbursement obligations, leaving SES on the hook for
tens of millions of dollars in expenses incurred on behalf of the C-Band
Alliance. The claim is for $11.6 million.
Intelsat is
making a concerted commitment to enhancing day-to-day network quality
and helping African communications service providers (CSPs) deliver
secure and affordable connectivity across the continent.
“Satellite
communications providers (CSPs) have historically rushed to the rescue
in the aftermath of a natural or manmade calamity that rendered a local
terrestrial network unavailable. Today, Intelsat is making a concerted
commitment to enhancing day-to-day network quality and helping African
CSPs deliver secure and affordable connectivity across the continent,”
said Intelsat’s Director of Sales, Africa Hans Geldenhuys in a blog
post.
A California court cleared
Intelsat's pre-bankruptcy major shareholders of insider trading
allegations on September 27th.
The action started in late 2019
with allegations over violations of the federal securities laws.
The lawsuit alleges that the named defendants violated the Exchange Act
by selling Intelsat shares while they were in possession of material
non-public information, including that Intelsat SA had met with the FCC
on November 5th 2019, to discuss the private sale of certain frequencies
controlled by Intelsat SA for future 5G use (the 'C-Band')
SES vs Intelsat
rages on
Posted: 4
January 2023
by Chris Forrester -- January
3, 2023
A slew of legal documents were submitted to
Intelsat’s Chapter 11 post-bankruptcy reorganisation on December
28th by lawyers for Intelsat.
In essence, the filings represent the Final Report
on Intelsat’s post-bankruptcy proceedings and an application to
close certain outstanding matters.
One particular argument is over $12 million of
expense and cost claims (“Bill of Costs”) made by SES in relation to
its litigation – which is still running – over the 50/50 division of
the FCC’s C-band incentive payments.
This batch of documents – the core filing runs to
159 pages – are all part of the wrapping up of Intelsat’s
post-bankruptcy actions following on from Intelsat’s exiting of
bankruptcy back in February 2022.
The US Bankruptcy Court at Richmond, Virginia,
issued a formal notification of these final hearings back in October
2022. The motion to disallow the SES claim is set to be heard on
January 31st.
Lawyers for Intelsat are arguing that “SES cannot
succeed on these Expense Claims under any theory [and that] SES in
fact owes Intelsat multiple millions of dollars.”
Any objections to the application must be filed by
January 24th.
Click
HERE
for
further details from
Advanced Television
Powerful Ariane 5 rocket launches 3
satellites to orbit
Posted: 16 December 2022
A powerful European rocket sent three satellites to Earth
orbit on Tuesday (Dec. 13).
An Ariane rocket lifted off from Europe's Spaceport in
French Guiana on Tuesday at 3:30 p.m. EST *2030 GMT or 5:30 p.m. local
time)
The rocket's star payload was Emetsat's Meteosat Third
Generation (MTG) Imager-1, which will allow for "rapid detection and
forecasting of severe weather events," according to a statement by
Arianespace, the French company that operates the Ariane 5.
The newest generation of these satellites includes two
new instruments, an imager and lightning imager, for higher-quality data
to improve weather forecasting, according to a European Space Agency (ESA)
statement.
The Ariane 5 also boosted the Galaxy 35 and Galaxy35
geosynchronous communications satellites to orbit on behalf of Intelsat,
to replace the company's aging Galaxy 3C and Galaxy 28 satellites,
respectively. (Intelsat has been refreshing its satellite fleet since
2020, and these satellites are the fifth and sixth of the refresh
series.)
A US bipartisan House Energy & Commerce Committee hyas introduced
potential legislation to update the FCC's current satellite licensing
rules. One aspect will be the prohibition of Chinese businesses,
although it is not yet completely clear whether the legislation will
cover satellites where ownership - as distinct to components - includes
Chinese companies. This could affect Eutelsat and its merger with
OneWeb, for example. Eutelsat has a Chinese shareholder.
The legislation also covers Russia, although again further clarity will
be need on operators which are correctly licensed by the ITU and how
that would impact their US services.
Judge Jeffrey White has set some
key dates in the Intelsat 'inside trading' class action allegatgions.
The judge has set the case to be "answered, or a Motion to Dismiss" on
January 19th 2023. Any Opposition filing must be made by March 2nd
with a subsequent response from the Petitiners set with a deadline of
March 30th.
The next Motion to Dismiss
hearing is set for April 28th in Judge White's courtroom.
The complaint was originally
mounted earlier this year but the judge dismissed the Federal Class
Action but permitted the Plaintiffs to re-plead their case with more
detail. The claim has been resubmitted in the US District Court in
the Northern District of California. The Plaintiffs are asking for
a jury trial.
Two major shareholders in the
pre-bankruptcy Intelsat, plus the former chairman, are named again by
Plaintiffs in a Class Action which alleges they took part in selling off
investments in Intelsat help by inside knowledge.
The complaint was originally mounted
earlier in 2022, but the judge in the case dismissed the Federal Class
Action, nevertheless permitting to re-plead their case with more detail.
The claim has been resubmitted to the US District Court in the Northern
District of California. The Plaintiffs are asking for a jury trial.
Click
HERE
for
further details from
Advanced Television
Clearspace announces life extension collaboration with Intelsat
Posted 15 November 2022
The European Space Agency signed an 86 million euro contract with
ClearSpace to de-orbit part of a Vega rocket. Credit: ClearSpace
TAMPA, Fla.
— ClearSpace, the Swiss orbital debris removal startup, said Nov. 14
it is planning a mission to extend the life of an Intelsat satellite
before it runs out of fuel around 2026-2028.
The
four-year-old company’s announcement gave no further details about
its “collaboration” with Intelsat, which marks an expansion for
ClearSpace out of plans to clean up debris in low Earth orbit (LEO)
to servicing geostationary spacecraft.
Intelsat
declined to comment on the specifics of its collaboration with
ClearSpace.
“With this
in-orbit servicing collaboration, besides the economic benefits of
the services, Intelsat is supporting ClearSpace´s work towards an
accessible, resilient and sustainable space economy,” Intelsat chief
technology officer Bruno Fromont said.
ClearSpace
aims to build on core capabilities it is already developing for the
European Space Agency’s ClearSpace-1 program in 2025, the venture’s
first mission, when it aims to use a spacecraft with four
articulated arms to de-orbit part of a Vega rocket.
Separately
in September, the UK Space Agency shortlisted groups led by
ClearSpace and Japan-based in-orbit servicing venture Astroscale for
a mission to remove
two spacecraft from LEO in 2026.
Intelsat is
currently the only satellite operator that has employed commercial
life extension services.
TAMPA, Fla. — SpaceX successfully launched a second pair of C-band
replacement satellites for Intelsat over the weekend on the final flight
of a frequently used Falcon 9 booster.
A Falcon 9 carrying Galaxy 31 and Galaxy 32 lifted off Nov. 12 from Cape
Canaveral, Florida, at 11:06 a.m. Eastern after a four-day delay caused
by Hurricane Nicole.
In what has become a rare occurrence, SpaceX did not attempt to recover
the Falcon 9’s booster for reuse following its 14th mission — which tied
a reuse record for the company.
Using an expendable version of Falcon 9 enabled SpaceX to pack more
propellant into the rocket for sending the Maxar Technologies-built
satellites to a supersynchronous transfer orbit, rather than an orbit
with an apogee below geostationary orbit (GEO).
Jean-Luc Foreliger, Intelsat’s senior vice president of space systems,
said the operator paid a premium for this mission because the satellites
needed an extra boost toward their final GEO destinations.
Intelsat orders
small GEO satellite from 3D
printing specialist
Posted:
8 November 2022
by Jason Rainbow --November
7, 2022
TAMPA, Fla. — 3D printing specialist Swissto12 said Nov.
7 it has sold its first small satellite to Intelsat for a launch to
geostationary orbit (GEO) in 2025.
Intelsat 45 (IS-45) will be based on Swissto12’s
HummingSat satellite platform, which at about the size of a dishwasher
is one-tenth the size of conventional GEO satellites.
At just one cubic meter in volume, Swissto12 CEO Emile de
Rijk said HummingSats are “at least 3 times cheaper” than larger
telecoms commercial satellites in GEO.
HummingSats will also have the same coverage area as
traditional spacecraft in GEO, de Rijk said via email, although with
less capacity because of their reduced space for transponders and power.
Intelsat 45 will have 12 Ku-band transponders, about a
fourth as many as a classic mid-sized Intelsat satellite.
FCC
plans revamped Space Bureau
Posted:
4 November 2022
by Colin Mann --November
3, 2022
Federal Communications Commission
Chairwoman Jessica Rosenworcel has unveiled a plan to reorganise the
agency better to support the needs of the growing satellite industry,
promote long-term technical capacity at the FCC, and navigate 21st
global communications policy.
Under this plan, Chairwoman Rosenworcel
will work to reorganise the FCC's International Bureau into a new Space
Bureau and a standalone Office of International Affairs. These
changes will help ensure that the FCC's resources are better aligned so
that the agency can continue to fulfill its statutory obligations and
keep pace with the rapidly changing realities of the satellite industry
and global communications policy.
Click
HERE
for
further details from
Advanced Television
SES outlines
Intelsat appeal
Posted:
1 November 2022
by Chris Forrester --October
31, 2022
Lawyers for SES submitted their bundle of
documnts to the Appeal Court on October 28th, following up on their
formal appeal lodged on October 14th with the US District Court for the
Eastern District of Virginia.
In its 'statement of issues' the SES team
will argue that Intelsat's bankruptcy count "erred in holding that the
plain language of the [SES and Intelsat] Consortium Agreement - [which]
mandated a 50/50 split of the [FCC's incentive payments] unambiguously
excluded billions of dollars in incentive payments that the FCC awarded
based on Intelsat's joint work with SES."
Click
HERE
for
further details from
Advanced Television
Satellite
operators gear up for Asia's tidal wave of satellite capacity
Posted:
21 October 2022
by Jason Rainbow --October
20, 2022
Terry Bleakley, regional
vice president of Asia Pacific for Intelsat, discussed the industry's
supply and demand expectations Oct. 18 during APSCC 2022. Credit
APSCC Webcast
TAMPA, Fla. -- Satellite operators in
Asia are banking on soaring demand for connecting plane passengers and
other customers on the move to absorb an exponentially increasing supply
of capacity in the region.
More integration between satellite and
mobile network operators will also create new opportunities for putting
this anticipated glut of supply to work, executives said Oct. 18 during
the APSCC 2022 Satellite Conference and Exhibition in Seoul, South.
Korea.
Northern Sky Research expects global
capacity supply to soar from about 39 terabits per second (Tbps) today
to 172 Tbps by 2030.
More than 61 Tbps of this satellite
capacity is on track to cover Asia by 2030, according to Jose Rosario,
research director at Northern Sky Research.
We have lost
contact with these members below. If you have any information on
how to contact them, please send us an EMail at:
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Mildred Coover John Crispin
Lydia Esguerra Fred Foldvary Roy Lee Huffman
Jethro Shedrick
SES to appeal
Intelsat C-band sharing decision
Posted:
18 October 2022
by Jason Rainbow --October
17, 2022
Intelsat plans a
multi-layered strategy post-restructuring to tailor connectivity
services to diverse markets. Credit Intelsat
TAMPA, Fla. -- SES filed plans Oct. 14 to
appeal a court's decision last month that disallowed its bid to equally
split nearly $9 billino of anticipated C-band clearning proceeds with
Interlsat.
SES will ask the U.S. District Court for
the Eastern District of Virginia to review the decision, which the U.S.
Bankruptcy Court for the Eastern District of Virginia made Sept. 30
after more than two years of legal action.
The satellite operator brought a $1.8
billion claim to the bankrupcty court in July 2020, two months after
Intelsat filed for Chaptl get for clearing C-band spectrum for
terrestrial telcos.er 11, over a broken agreement to split proceeds they
would get for clearing C-band spectrum for terrestrial telcos.
SpaceX launched a pair of four-ton Intelsat
communications spacecraft from Cape Canaveral at twilight Saturday
evening, two days later than planned after back-to-back scrubs, on the
third flight of a Falcon 9 rocket this week.
The Falcon 9 rocket lit nine kerosene-fueled Merlin 1D
engines and thundered away from Cape Canaveral Space Force Station at
7:05 p.m. EDT (2305 GMT) Saturday. Thrust vector controls pivoted nine
main engines to steer the 229-foot-tall (70-meter) rocket due east from
pad 40, and the Falcon 9 raced through the speed of sound in less than a
minute.
Click
HERE
for
further details from
Spaceflight Now.
SES
loses Intelsat claim
Posted:
4 October 2022
October 3, 2022 | By Chris Forrester
A Virginia bankruptcy court has ruled
("disallowed") the action by SES against Intelsat for a 50 per cent
share of the FCC's C-band incentive payments. The Court has
allowed SES to appeal the decision it it so wishes.
SES says it is disappointed with the
ruling "it is reviewing with outside counsel its options to appeal,"
says a statement.
Click
HERE
for
further details from
Advanced Television
Intelsat Class
Action could continue
Posted:
30
September 2022
September 28, 2022
By Chris Forrester
On September 28th, we reported that a California judge cleared
Intelsat's pre-bankruptcy major shareholders of a Class Action insider
trading allegations. Our report was accurate, but Judge Jeffrey
White, from the US District Court for the Northern District of
California, left a potential sting in the tail of his ruling.
The judge said that while the Action failed to describe the level of
intention needed for an inside trading claim, the would-be Action
plaintiffs may re-plead their claims and allegations. The court
noted, among other things, that the confidential witnesses do not point
to any communications between CEO Steve Spengler and the Board on
November 5th. The court concluded that plaintiffs failed to
sufficiently allege that the defendants possessed material non-public
information and they they acted with scienter (intent or knowledge of
wrong doing).
A California court cleared
Intelsat's pre-bankruptcy major shareholders of insider trading
allegations on September 27th.
The action started in late 2019
with allegations over violations of the federal securities laws.
The lawsuit alleges that the named defendants violated the Exchange Act
by selling Intelsat shares while they were in possession of material
non-public information, including that Intelsat SA had met with the FCC
on November 5th 2019, to discuss the private sale of certain frequencies
controlled by Intelsat SA for future 5G use (the 'C-Band')
Viasat,
Inmarsat, get UK merger approval
Posted:
18 September 2022
September 16, 2022 | By Chris Forrester
Viasat and
Inmarsat have received the UK government’s approval for their proposed
merger.
The UK’s
Secretary of State for Business, Energy and Industrial Strategy (BEIS)
has announced that the transaction does not pose a risk to the UK’s
national security.
In March 2022,
the companies committed to economic undertakings with BEIS, which
underlined their pledge to strengthen and advance the UK’s National
Space Strategy. The economic undertakings include an expansion in the
number of highly skilled jobs in key areas and a 30 per cent increase in
overall research and development spending in the UK.
Click
HERE
for
further details from
Business Standard.
Intelsat
promises transformation
Posted: 15 September
2022
September 15, 2022 | By Chris Forresterr
Intelsat’s
new CEO David Wajsgras spoke to delegates at the
Euroconsult Paris World Satellite Business Week and said that Intelsat
was looking at transformation on multiple levels.
Intelsat is
now fully emerged from bankruptcy although also surrounded by rumours
that there could be a merger with arch-rival SES.
Wajsgras
joined Intelsat in April. He told delegates: “The way the industry looks
today with the core players may or may not look the same in the next
couple of years. We’re thinking
through at Intelsat what’s the best path forward for us and we’re
considering various types of opportunities that will help support our
growth path. I’m sure I’m not
the only one.”
Steven Serajeddini, a
partner in giant US law firm Kirkland & Ellis, which represented
Intelsat during its Chapter 11 restructuring, has explained to
LevFin Insights how, as debtors’ counsel, they overcame many of the
challenges faced by Intelsat during the process. He said that key to
the settlement was consensus although it took “two hard-fought
years” to get the result.
Admitting that it took “blood,
sweat and tears” to achieve agreement, full consensus only came
about at the 11th hour.
Serajeddini said: “Folks are going to remember [the bankruptcy] for
a long time. Part of it obviously is the size of the matter. It’s
one of the largest filings of the past couple of years, and in
addition to that, it had unique complexity in terms of how it
started, which was a company whose greatest source of value rested
in the hands of how the FCC would approach monetisation of its
C-Band [spectrum].”
Intelsat wins $150m
Alaskan contract
Posted:
15 September 2022
September 9, 2022 | By Chris Forrester
Alaskan
service provider GCI has signed a $150 million contract with Intelsat to
expand telecoms capacity in rural areas of the US state.
GCI is
already very experienced in providing satellite-based services. It has
delivered geosynchronous (GEO) satellite-based connectivity for 35 years
to provide data, video and voice services in the state. The new deal not
only provides GCI with continued access to C-band and Ku-band capacity,
which is already part of GCI’s satellite service portfolio, but it also
provides new access to statewide Ka-band capacity.
Intelsat
says it will supply a multi-satellite solution over a new and enhanced
managed earth station platform and a tri-band (C, Ku and Ka) network
that will cover the entire state of Alaska.
Click
HERE
for
further details from
Advanced Television
Welcome New
Members
Posted:28
August 2022
We are pleased to Welcome the following new members
to the Intelsat
Retirees and Alumni Association:
August
2022
Maria-Marta Andrade
Aissatou Bah
Junie Nathani
Devas Multimedia seizes $87,457 cash in
US in Antrix Corporation dispute
Posted:
18 August 2022
Devas Multimedia has seized USD 87,457.47 cash that
ISRO's commercial arm Antrix Corporation held in the US as it looked to
enforce a USD 1.2 billion compensation it had won over a cancelled
satellite deal, its lawyer said on Wednesday.
Devas Multimedia America Inc had sought seizure of USD
145,000 but the actual recovery was USD 87,457.47 (a little less than Rs
70 lakh). This came after it secured a favourable order from the Eastern
District Court of Virginia, Matthew D McGrill said.
Click
HERE
for
further details from
Business Standard.
Intelsat,
One-Web IFC Deal
Posted: 16 August
2022
August 12, 2022
By Chris Forrester
Intelsat and
OneWeb have signed a “global distribution” partnership, an initiative to
provide a global service for In Flight Communications and broadband to
aircraft.
Intelsat already has
considerable skin in the game because it bought in 2020 the commercial
aviation connectivity business from Gogo for what many have seen as
being a timely ‘bargain’ of $400 million (€388m). Gogo is still very
much active but now concentrates only on business aviation and private
jets.
Satellites maker
SES beats profit estimates, sees upside to market consolidation
Posted: 4 August
2022
The Financial Times reported on Thursday SES was in talks to merge with
its U.S. rival Intelsat SA, signaling consolidation in the rapidly
changing industry.
Reuters August 04, 2022, 13:24 IST
By Dina Kartit and Elena Vardon
Satellite company SES's CEO reiterated on Thursday he saw industry
consolidation as a good thing for the highly competitive market, but
would not comment on merger rumours after the group posted
stronger-than-expected half-year earnings.
Te Financial Times reported on Thursday SES was in talks to merge
with its U.S. rival Intelsat SA, signally consolidation in the
rapidly changing and competitive industry.
"We've talked on this call and on analyst calls about industry
consolidation and how that is...from my perspective at least, a good
thing for the industry, but we obviously don't comment on any market
rumours or speculation," Chief Executive Stevbe Collar told
reporters in an earnings call.
SES and Intelsat
are reportedly in talks about a possible combination, says the
Financial Times.
The two satellite
giants are in active discussions about the structure of any potential
deal, according to three people familiar with the matter, says the FT,
as a wave mergers and acquisitions sweeps aceross the satellite
industry. "Neither wants to be the last one standing," said one
person close to the matter.
Eutelsat and
OneWeb to combine: a leap forward in Satellite Connectivity
Posted:
2 August 2022
PRESS RELEASE -26
JULY 2022 07;01
Eutelsat and
key OneWeb shareholders
[1] sign a Memorandum of Understanding with a view to combining
Eutelsat and OneWeb in an all-share transaction.
Eutelsat
shareholders and OneWeb shareholders
[2] would each hold 50% of the Eutelsat shares.
Compelling
financial profile with:
Potential
for double-digit revenue and EBITDA CAGR over the medium to
longer tyerm;
Eutelsat's strong cash flow generation providing visibility and
funding to support continued expansion into the LEO market
through OneWeb's next generation of satellites;
Over
€1.5bn potential incremental value-creation after tax (net of
implementation costs) stemming from revenue, capex and costsynergies.
Balanced board and governance structure, to include Eutelsat’s
Chairman and its CEO, OneWeb’s Chairman, and a significant number of
independent directors proposed by Eutelsat and OneWeb’s
shareholders, at Extraordinary General Meeting.
Fully backed by a strong set of strategic
shareholders of both entities, including Bpifrance and Fonds
Stratégique de Participations who have undertaken to vote in favour
of the transaction-related resolutions at this EGM, subject to usual
conditions.CMA
CGM, a shareholder of Eutelsat, is also supporting the combination.
Representing a transformational transaction, built on
the strong foundations established in April 2021 with Eutelsat’s
initial investment in OneWeb, this combination creates a global
leader uniquely positioned to capture the Connectivity market with
complementary GEO/LEO[3]offering.
Combined entity strongly positioned to address the fast-growing
global Connectivity market..
The transaction
values OneWeb at $34.4bn implying a value of
€12 per Eutelsat share (including the dividend,
before synergies).
Eutelsat to propose a €0.93 per share dividend with a
scrip option in respect of FY 2021-22 at its upcoming AGM. Such
dividend will not impact the exchange ratio.
Eutelsat will continue to be listed on Euronext Paris
and apply for admission to standard listing on the London Stock
Exchange.
The EU has
firmly ruled out the proposed Eutelsat/OneWeb merger as qualifying as
the likely candidate for the EU's own planned Low Earth Orbiting (LEO)
broadband constellaton.
As reported by
Sami Kassab, satellite analyst at investmnet back Exane/BNPP,
Christopher Grudier, the member of the European Parliament in charge of
the EU's LEO satellite project announced that "a rapprochement of OneWeb
with the Europeransat constellation seems impossible". He claimed
that "the EU cannot accept a UK veto on a secure connectivity
infrastructure". He argued that "the European Union needs to have
full control over its satellites without a risk of hindrance by an
outside actor." Adding "Europe will not compromise on this point".
Grudier is
referring to the golden share the UK Government has in OneWeb, and which
Eutelsat says would remain in place once the 'merger' with OneWeb goes
ahead. The 'golden share' has teh ability to block the sale of
OneWeb capacity to undesired countries.
We have lost
contact with these members below. If you have any information on
how to contact them, please send us an EMail at:
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Mildred Coover John Crispin
Lydia Esguerra Fred Foldvary Roy Lee Huffman
Jethro Shedrick
Eutelsat+OneWeb: "Disappointing valuation" says bank
Posted:
27 July 2022
Investment bank
Exane/BNPP, in a comprehensive report on the proposed merger between
satellite operator Eutelsat and Low Earth Orbit constellation OneWeb,
says the "increase in interest rates, inflation, the war in Ukraine, [OneWeb]
Gen2 funding requirements all suggest a bit of patience could have
improved the financial outcome for minority shareholders...but the new
EU space policy apparently has precedence".
Analyst Sami
Kassab, author of the report, says the bank believes the timing of this
deal has to be seen first and foremost in the context of the new
European space policy and of the French government's geopolitical
agenda. Nevertheless, he describes the merger as "profoundly
changing the economic model of Eutelsat".
Eutelsat,OneWeb
to merge;Bharti to be single largest shareholder
Posted:
26 July
2022
Eutelsat and OneWeb Ltd are set to combine in an
all-share deal valuing the UK satellite operator at $3.4 bn, a step
toward creating a European champion to rival the likes of Elon Musk's
SpaceX
Topics
Press Trust of India | New Delhi
Last Updated at July 26, 2022 22:04 IST
French satellite operator Eutelsat and key shareholders
of Bharti-backed OneWeb have inked a pact for merger, entailing
all-share transacton, a statement said on Tuesday.
Post closing of the deal, Bharti Group will be the single
largest shareholder of Eutelsat.
The transactionj values OneWeb at USD 3.4 billion (over
Rs 27,000 crore),according to a joint statement.
Eutelsat willo combine its strong fleet of 36
Geostationary Orbit (GEO) satellites with OneWeb's constellation of 648
Low Earth Orbit satellites, of which 428 are currently in orbit.
The announcement has a takeaway from the India market as
well, where OneWeb had received the letter of intent for the GMPCS
(Global Mobile Personal Communication by Satellite) licence from the
Department of Telecom.
Click
HEREfor
further details from
Business Standard.
Welcome New
Member
Posted:18
July 2022
We are pleased to Welcome the following new member
to the Intelsat
Retirees and Alumni Association:
July
2022 Hubert Keel
Bank:
SES/Intelsat merger worthwhile?
Posted:
28 June
2022
Equity analysts at Credit Suisse
have asked a key question in a fresh report and pondering whether a
merger between the world’s two biggest satellites operators, SES and
Intelsat, both based in Luxembourg, would pan out.
Their answer is a simple: you bet it would.
The bank’s report (European
Satellite: Scaling Up) suggests that there would be a 30 per cent uplift
to the overall equity value of the rivals and make complete sense.
Analyst Ben Lyons sums up the benefits saying that the theoretical
proposal could make industrial sense as both the operators have global
reach with more potential synergies, and both are pursuing Medium-Earth
Orbit (MEO) strategies.
A new report from Credit Suisse
explores possibilities for consolidation among the largest companies in
the satellite sector, estimating that in the event that SES and Intelsat merged,
it could provide more than 30% uplift to the equity value. Credit Suisse
shared the report, “European Satellite: Scaling Up” with Via
Satellite.
Ben Lyons, a satellite equity
analyst at Credit Suisse said in the report that an SES/Intelsat merger
“would make economic sense.” He says Credit Suisse believes
theoretically it could make industrial sense to combine SES and
Intelsat, as both have global reach with more potential synergies, and
are pursuing Medium-Earth Orbit (MEO) strategies.
“On our scenario analysis, a
potential combination could generate synergies with an NPV [net present
value] of $2.6 billion and, if SES captures half of those synergies,
that would imply a roughly more than 30% uplift to the equity value. We
believe consolidation for SES is more straightforward economically
speaking as the OneWeb stake
makes consolidation more complex, but not impossible, for Eutelsat,”
he says.
Intelsat looks
to wrap bankruptcy claims
Posted:
20 June 2022
June 17, 2022
Lawyers for
Intelsat's bankruptcy filed a motion to the satellite operator's
bankruptcy court saying that they will b e apply for a 'Final Decree' on
or before June 29th. The doucmnet recognises that there may be
other matteres and claims still outstanding after that date.
Intelsat's Fourth
Chapter 11 Plan of Reorganisation was filed back on December 17th 2021
and subsequently accepted by the court with Intelsat emerging from its
Chapter 11 rteorganisation on Frebruary 23rd 2022.
Intelsat
serving 10,000 vessles
Posted: 10 June 2022
June 10, 2022
By Chris Forrester
Intelsat is now serving more than 10,000 vessels
with its Flexmartime Service.
Intelsat says it has more than 2,000 of its terminals in key martime
markets since November 2021, that includemerchant shipping, fishing,
leisure and offshore energy.
Launched in 2017, FlexMaritime is powered by a globel, multi-layered,
high-throughut satellite (HTS) network capable of deliver high density
bandwidth and extremely high levels of service flexibility and
reliability.
Click
HERE
for
further details from
DEuropean Union
Welcome New
Members
Posted:16
May 2022
We are pleased to Welcome the following new members
to the Intelsat
Retirees and Alumni Association:
May
2022
Angela Maimo Daniel Stefanita
Help Us Find These Members
Posted:
22
April 2022
We have lost
contact with these members below. If you have any information on
how to contact them, please send us an EMail at:
info@myiraa.comm
John Crispin Lydia Esguerra
Roy Lee Huffman
Welcome New
Member
Posted: 6 April 2022
We are pleased to Welcome the following new member
to the Intelsat
Retirees and Alumni Association:
April 2022
Raj Mehta
David Wajsgras to Become Intelsat CEO
Posted:
7 March 2022
McLean, Va. – Intelsat, operator of the world’s
largest integrated satellite and terrestrial network, has tapped David
Wajsgras, as its next chief executive officer (CEO). Effective April 4,
Wajsgras succeeds Stephen Spengler, who announced his planned retirement
in Oct. 2021.
Wajsgras has two decades of experience at the senior
executive management level, providing operational, strategic and
financial leadership in both the commercial and defense industries. He
most recently served as president of the global, $7.5-billion,
advanced-technology Intelligence, Information and Services (IIS)
business at the former Raytheon Company, now part of Raytheon
Technologies (NYSE: RTX). Before joining Raytheon as chief financial
officer, Wajsgras was executive vice president and chief financial
officer at Lear Corporation (NYSE: LEA) and held other key operations
and leadership roles.
“Dave Wajsgras is a results-oriented leader with a
great track record of performance throughout his career,” said Lisa
Hammitt, chairperson of the Intelsat Board of Directors. “He develops
talent and builds teams, thinks and acts strategically, and engages
positively with customers and other stakeholders to the benefit of the
business. Dave is just the right person to lead Intelsat at this
important time.”
Microsoft Does
Private Wireless with Intelsat; updates Azure Cloud for AT&T
Posted:
28 February 2022
By Linda Hardesty
- Feb 28, 2022 01:53pm
Microsoft had a couple of telecom announcements to insert itself into
the conversations this week around MWC 2022 in Barcelona.
Microsoft said it worked with Intelsat to demonstrate a private wireless
netowork.. Intelsat provided its integrated satellite and terrestrial
networks, while Microsoft contributed various Azure technologies. The
demonstration was held at Intelsat’s office in McLean, Virginia. It
established a reference architecture for deploying private LTE and 5G
networks over satellite to enterprise locations around the world.
The demonstration
was held at Intelsat's office in McLean, Virginia. It established
a reference architecture for deploying private LTE and 5G networks over
satellite to enterprise locations around the world.
For the
demonstration, the two companies created a private LTE service using
Azure Private 5G Core deployed on an Azure Stack Edge device.
Connectivity to the internet and Azure services was enabled by
Intelsat's FlexEnterprise, which is the company's satellite-based global
connectivity service.
Intelsat
Collaborates with Microsoft to Demonstrate Private
Cellular Network Using Intelsat's Global Satellite and Ground Network
Posted:
27 February 2022
McLean, Va., and Redmond, Wash. – Intelsat, operator of one of the
world’s largest and most advanced integrated satellite and terrestrial
networks, today announced the successful demonstration of a first of its
kind private cellular network with Microsoft Azure Private Multi-Access
Edge Compute and FlexEnterprise, Intelsat’s satellite-based global
connectivity service.
Held at Intelsat’s office in McLean, VA, the demonstration
successfully establishes a reference architecture for deploying secure,
high-performance private LTE and 5G networks and other cloud services
over satellite networks to enterprise locations virtually anywhere
globally, including those in remote and austere environments.
The demonstration creates a private LTE service using Azure Private
5G Core deployed on an Azure Stack Edge device. Connectivity to the
internet and Azure services is enabled by Intelsat’s FlexEnterprise. Via
the private cellular network, users can access local enterprise
resources via SIM-authenticated connections to the Azure Stack Edge and
access remote resources through the FlexEnterprise connection, the
IntelsatOne global network and Azure. Additionally, the LTE network
powers a Wi-Fi access point and IoT applications. “As enterprises look
to private cellular networks to improve the reach, security, and
quality-of-service over Wi-Fi-only local networks, the ability to
support deployments at any site is crucial to creating a fully connected
organization,” said Jean-Philippe Gillet, SVP Global Sales Media &
Networks, Intelsat. “The applications demonstrated here with Microsoft
highlight the increased automation and standardization of enterprise
data processing services that globally-available private cellular
networks will enable. Support for high-bandwidth, low-latency networks
is central to Intelsat’s vision of an end-to-end ecosystem for a global
software-defined 5G network.”
Intelsat wipes
out 9.5bn debit as it emerges from bankruptcy
Posted:
25 February 2022
Alan Burkitt-Gray February
24, 2022 07:54 AM
Satellite
operator Intelsat has emerged from bankruptcy with its debt cut from
US$16 billion to $7 billion, and with $6.7 billion in new finance.
The move comes 21 months after the company - with a
history that dates back more than 60 years - went into
Chapter 11 protection under US bankruptcy laws.
The biggest new shareholder, with 32.8%, is Pacific
Investment Management Company (Pimco), whose ultimate
parent, according to the Federal Communications
Commission (FCC), is Allianz SE, a Munich financial
services company.
Shares in the
new Intelsat – which is registered in Luxembourg – will
be traded on the over-the-counter (OTC) market.
The new
shareholders have put in place a new board of directors,
chaired by Lisa Hammitt (pictured) and including CEO
Stephen Spengler.
We are pleased to Welcome the following new member
to the Intelsat
Retirees and Alumni Association:
December
2021
Muneo Abe
Notification of
Intention to Acquire Intelsat by Allianz SE
Posted: 7 January 2022
Below found on the European Union
website by a member:
1. On 21 December 2021, the Commission
received notification of a proposed concentration pursuant
to Article 4 and following a referral pursuant to Article 4(5) of
Council Regulation (EC) No 139/2004 (1).
This notification concerns the following undertakings:
—
Allianz SE (‘Allianz’, GERMANY),
—
Intelsat Holdings
S.A. (‘Intelsat’, USA)
Allianz acquires
within the meaning of Article 3(1)(b) of the Merger Regulation sole
control of the whole of Intelsat
The concentration
is accomplished by way of purchase of shares.
2.
The business activities of the undertakings concerned are:
—
for Allianz: Allianz
is the ultimate parent of the Allianz group, a global
financial services company active predominantly in relation
to life and non-life insurance and asset management,
—
for Intelsat:
operation of satellite networks, ground networks and
connectivity infrastructure and provision of diversified
communications services to customers such as
telecommunications operators, media companies, and internet
service providers. Intelsat uses its satellites as relay
stations in space for the transmission of voice, video, and
data communications.
Click
HERE
for
further details from
DEuropean Union
Intelsat
Achieves Confirmation of Plan of Reorganization, Final Court
Milestone in Financial Restructuring Process
Posted: 16 December
2021
Fully Consensual Plan Will Reduce Debt by More Than Half and Position
Company for Long-Term Success
Early 2022 Emergence Expected as Company Builds World’s First Global 5G
Satellite-Based, Software-Defined, Unified Network
Commitments Obtained for Nearly $8 Billion in Exit Financing
MCLEAN, VA -- December 16, 2021
-- Intelsat S.A. (OTC: INTEQ) announced today that the U.S.
Bankruptcy Court for the Eastern District of Virginia, Richmond
Division, has approved its Plan of Reorganization, marking the final
Court milestone in the Company's financial restructuring process.
Intelsat is poised to emerge from the process in early 2022 upon receipt
of regulatory approvals, completion of certain corporate actions, and
satisfaction of other customary conditions.
The confirmed Plan will reduce
Intelsat's debt by more than half -- from approximately $16 billion to
$7 billion -- and position the Company for long-term success as it
innovates and brings new services to market. The Plan was
supported by all creditor groups across Intelsat's capital structure
following extensive negotiations and the ultimate consensual resolution
of a multitude of complex issues.
Intelsat formal
hearings commence
Posted: 7 December
2021
Judge Keith L. Phillips opened
the formal hearings into Intelsat’s Chapter 11 exit plan. The process is
scheduled to last about 10 days. Around 216 lawyers and observers
attended the Zoom meeting for sessions which were described as
“complex”.
The court was told that more
than 90 percent of claimants against the various Intelsat entities had
accepted the terms of the exit plan and bankruptcy reconstruction. The
complexity was largely because of the many different Intelsat businesses
as well as those Intelsat entities which traded from Luxembourg.
After almost seven years as CEO and more than 18 years
at Intelsat,
CEO Steve Spengler plans to retire once the company completes Chapter 11
financial restructuring and selects a successor. Intelsat announced the
change Thursday morning, and said Spengler will lead the company until
then.
The Intelsat news came as a surprise before the stock
market opened on Thursday. Its stock closed 36% up on Thursday, and was
up 81.82% after the announcement.
A
senior Intelsat official told Via
Satellite that
they were not aware of Spengler’s retirement plans until the
announcement was made.
This was confirmed by another Intelsat official directly
involved with the company’s strategic planning, who told Via
Satellite, “It was a surprise to me. I think it was for people
above me in the chain of command.”
The strategy official added that Spengler has not made
direct contact with their team. “He sent us an email. Basically [it was]
the same as the press release.”
Click
HERE
for
further details from
Satellite Today
Betting on flexibility: Intelsat's
post-bankruptcy growth strategy
Posted:
18 October 2021
SpaceNews
spoke with Samer Halawi, Intelsat’s executive vice president and
chief commercial officer, to learn more about the satellite giant’s
post-restructuring growth strategy.
Intelsat is devising a transformational business plan for
after it emerges from bankruptcy restructuring later this year,
including a big bet on software-defined satellites and potentially its
own low-Earth-orbit broadband constellation.
The operator, which has been in
Chapter 11 bankruptcy protection for nearly a year and a half, issued a
request for proposals (RFP) at the end of July for 10 satellites that
could be reconfigured in-orbit for changing mission needs.
Intelsat "steals
billions" Claims SES
Posted 13 October 2021
Last week it was an Intelsat motion to its bankruptcy court that accused
SES of being “on a warpath” as far as its allegations over SES claims
concerning how the FCC’s C-band incentive payments were concerned.
SES responded on October 11th with a detailed rebuttal saying it had
proposed “numerous compromises” to Intelsat and asked the bankruptcy
court to permit SES to take four depositions from Intelsat witnesses
“who have personal knowledge highly relevant to SES’s objections”.
Intelsat: "SES
on a Warpath"
Posted
8 October 2021
The long-running
legal dispute between SES and Intelsat over the division of the FCC’s
‘incentive’ payments regarding the C-Band Alliance has provoked another
tough response from Intelsat’s lawyers.
A filing into
Intelsat’s bankruptcy court on October 6 states that “SES has been on a
warpath in this proceeding” and had spent millions of dollars “and
imposing every burden it can think of in an effort to disrupt the
restructuring of its chief competitor”.
We are pleased to Welcome the following new member
to the Intelsat
Retirees and Alumni Association:
September
2021 Ellen Brager George Giagtzolou
Tony Trujillo
SES vs Intelsat Trial Delayed
Posted:
17 September 2021
The SES claim against Intelsat for a potential
$1.8 billion has been postponed.
Judge Keith Phillips, who is overseeing
Intelsat’s Chapter 11 bankruptcy reconstruction, had earlier
confirmed that the trial date for the SES vs Intelsat dispute
over FCC payment allocations would start on September 20th. A
new date has not – as yet – been circulated.
SES Accuses Intelsat of 'siphoning'
Billions
Posted:
1 September 2021
It has long been a complaint from SES that
Intelsat, in its complex Chapter 11 bankruptcy, is using
associate and sister businesses to shift incoming cash (and in
particular the so-called incentive payments from the FCC over
the C-band reallocation of spectrum). SES describes the Intelsat
action as playing a “shell game” and that Intelsat is using
sleight of hand in how it proposes allocating the FCC’s
incentive payments.
The matter was raised again in a motion to
Intelsat’s bankruptcy court on August 30th where SES again
objected to the risk of Intelsat “siphoning billions of dollars
from the Debtors’ principal operating entity, Intelsat US, and
disadvantage SES, their main competitor and one of Intelsat US’s
largest creditors.”
SES Demands
Trial on It's $1.8bn Claim
Posted:
27 August 2021
On September 1st
the Intelsat bankruptcy court is scheduled to hold a pre-trial hearing
on the SES claim for a greater share of the FCC’s incentive payments due
from the C-band clearing process and auction. SES, in a filing to the
court on August 25th, is asking that the actual trial scheduled for
September 20th be started on that date and not further adjourned or
postponed.
SES suggests that
a trial over Zoom could ease challenges for all concerned and save case
witnesses from both sides having to travel to Richmond, Virginia along
with “hundreds of people” including lawyers and other experts involved
with commensurate financial savings. A fixed date and remote Zoom
hearing “Would give the parties some certainty; given the unpredictable
trajectory of the Covid-19 pandemic and its effect on in-person
proceedings, there is no guarantee that an adjournment would make it
possible to proceed in person anytime in the near future.”
Intelsat
Achieves Support of Nearly 75% of Funded Debt on Comprehensive Financial
Restructuring
Posted:
25 August 2021
Key Creditor Groups Agree to Vote in Favor of Amended
Plan of Reorganization
Path to Emergence by End of 2021, with Company's Debt
Reduced by More Than Half
MCLEAN, VA - August 24, 2021 -
Intelsat S.A. (OTC: INTEQ), operator of the world's largest and most
advanced integrated satellite and terrestrial network, today announced
that it has achieved the support of key creditor groups across the
capital structure on the terms of a comprehensive financial
restructuring that would reduce the Company's debt by more than half -
from nearly $15 billion to $7 billion - and position the Company for
long-term success.
The Company has filed an Amended
Plan of Reorganization in its Chapter 11 proceedings pending before the
U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond
Division, accompanied by an explanatory Disclosure Statement. The
Amended Plan has the support of holders of approximately $11 billion, or
nearly 75% of the Company's funded debt. These supporting
creditors have executed a Plan Support Agreement that binds their
support for the Company's Amended Plan.
The Company is seeking Court
approval of the Disclosure Statement and to establish procedures to
solicit votes on the Amended Plan at a hearing scheduled for September
1, 2021.
We are pleased to Welcome the following new members
to the Intelsat
Retirees and Alumni Association:
August
2021 Lawrence (Larry) Brown Michael
J. Brown Yao Gao Michael
Goldstein AnaMaria Puch
Vince Walisko
SES vs Intelsat
hearings: Public barred
Posted:
20 August
2021
The August 19th application by
Intelsat and SES to have much of their court arguments heard privately
was granted by Intelsat’s Chapter 11 bankruptcy Judge.
Despite a strong case submitted
by the US Trustee, who argued that the two litigants were seeking to
close the courthouse door during their submissions and that the public
had a right to know what was being presented to the court, Judge Keith
Phillips ruled that the elements of the SES and Intelsat submissions –
whether confidential or not – could remain ‘sealed’ and with the court
proceedings only available (and viewable on Zoom) to approved lawyers
for the parties involved.
Click
HERE
for
further details from
Advanced Television
Musk's Space
Push Forces Satellite Rivals into Merger Mode
Posted:
20 August
2021
(Bloomberg) -- Plans by Elon Musk and Jeff Bezos to
launch thousands of satellites into orbit are forcing an industry that’s
traditionally wary of mergers to prepare for consolidation. The
billions of dollars that Musk is pouring into his Starlink broadband
internet service are skewing the economics of space for companies like
SES SA, the world’s second-biggest satellite operator by sales. The
growth of streaming over fiber optics threatens another of their
mainstays -- satellite TV.
Takeovers, investments and joint ventures in the industry
this year have already surpassed 2020, with more than $3.6 billion spent
on them so far in 2021, according to data compiled by Bloomberg.
TAMPA, Fla. — SES is asking Intelsat’s bankruptcy court for a speedier
summary judgment on the satellite operators’ C-band dispute instead of a
full trial.
The company said
in a June 16 court filing that it had already submitted enough evidence
for a ruling in its favor over Intelsat’s withdrawal from their C-Band
Alliance, where it said the competitors agreed to split proceeds from
clearing the spectrum evenly.
This includes
emails and text messages among senior Intelsat executives that SES says
support its case.
SES said in the
filing that Intelsat wrongfully seeks to keep a $421 million chunk of
the C-band proceeds from the company as a result.
Satellite
operators are in line for $9.7 billion in total from the Federal
Communications Commission (FCC) for clearing 300MHz of C-band, provided
they meet deadlines for making it available for wireless 5G operators.
Intelsat and SES
hold the largest share of the 500 MHz C-band in the U.S. and will get
$4.9 billion and $3.97 billion, respectively, under the FCC’s plan.
Intelsat's Q1 earnings down
50% year over year despite higher revenue due to Gogo acquisition
COVID-19 drags down SES Q1
revenue; operator says video decline is slowing
Intelsat and SES C-ban legal
battle rages on
TAMPA, Fla. — Satellite operators Intelsat and SES say they are on track
to meet a key C-band spectrum clearing deadline this year, despite
ongoing COVID-19 disruption.
The pandemic has been slowing supply chains for delivering upgrades and
filters needed to clear the frequencies for terrestrial 5G wireless
operators — and limiting access to sites to install them.
But Intelsat and SES, which hold the lion’s share of C-band in the
United States and will get around $9 billion combined if they clear
their part of the 300 megahertz of auctioned spectrum in time, said
during financial results they are on track for the first big deadline
Dec. 5.
That is when a portion of the spectrum currently being used to provide
TV and radio to nearly 120 million U.S. homes must be available for 5G
mobile.
Intelsat and SES will get $1.2 billion and $1 billion, respectively, if
they meet the Dec. 5 deadline for clearing the first 120 megahertz of
C-band the U.S. Federal Communications Commission began auctioning off
late last year.
We have lost
contact with these members below. If you have any information on
how to contact them, please send us an EMail at:
info@myiraa.comm
Mike Brown John Crispin Lee Huffman
Intelsat's
Chapter 11 Exit Plan Falters
Posted:
12 April
2021
Intelsat is
asking its Chapter 11 bankruptcy court for more time to deliver its exit
plan from bankruptcy.
A hearing
scheduled for April 14th will see Judge Phillips asked for more time.
Intelsat says the additional time is necessary to ensure that it
maintains control of its case, which is particularly complicated because
of the dozens of subsidiary and sister businesses under various Intelsat
names all of which are affected by the bankruptcy.
Click
HERE
for
further details from
Advanced Television
Welcome New
Members
Posted: March 27, 2021
We are pleased to Welcome the following new members to the Intelsat
Retirees and Alumni Association:
February
2021
Phil Spector
March
2021
Tokuo Oishi Benjamin Smith
Intelsat Court
Hearing on March 17
Posted:
9 March 2021
Intelsat’s Chapter 11 bankruptcy court will hold an
omnibus hearing on March 17th.
The remote video hearing will see Judge Philips hear a
number of motions. Three important items listed for hearing are the
application by Intelsat’s lawyers for the court to approve Intelsat’s
request for an “Expedited” process for its exit plan from bankruptcy.
Click
HERE
for
further details from
Advanced Television
Inaugural
Congress of the Global Alliance for International Collaboration in Space
(GALIX)
Posted: 23 February 2021
You are
cordially invited to register for the Global Alliance for
International Space Collaboration (GALIX) Congress on March 18-19.
(10:00am-12:30pm EDT and 15:00-17:30 pm CET) This global forum
features many key space leaders from around the world including NASA
Chief Scientist James Green, Niklas Hedman of the UN OOSA, Michelle
Hanlon of For All Moonkind, Juan De Dalmau President of the
Internat’l Space Univ., Lucy Stojak of the Canadian Space Council,
Alicia Woodly of Axiom, J-J Tortora of the European Space Policy
Institute, Su-Yin Tan of the Univ. of Waterloo, Canada, Dr. Kai-Uwe
Shrogl of ESA/DLR, and many other notables listed in the Program at GALIX.net.
Please go
to https://www.galix.netand
click on registration page. Notice of the Zoom Address will be sent
to you in coming days. The Purpose of GALIX is to expand
international collaboration in space and to enhance space policy,
financial opportunity, education and training, and regulation to
this end of global partnership. Some fifteen organizations are
working in collaboration on this global initiative. Registration is
on a first come and first serve basis and a Zoom address for this
event will be provided to you in coming days after you are
registered.
Joseph N. Pelton, Chairman of the Board of GALIX, Dean Emeritus,
International Space University, Founder of the Arthur C. Clarke
Foundation, Founding President of the SSPI, Member of the
International Academy of Astronautics
Chairman of
Embattled Satellite Operator Accused of Insider Trading
Posted:
18 January 2021
The chairman of satellite operator Intelsat is
being sued for insider trading in an explosive new shareholder
lawsuit that also dings private-equity giants BC Partners and
Silver Lake Partners, a New York Knicks shareholder.
The Oakland, Calif., federal court lawsuit claims
that David McGlade, Intelsat’s chairman and former CEO, sold
stock in the satellite operator on Nov. 5, 2019 — mere hours
after the company’s CEO learned that the Federal Communications
Commission was leaning against a proposal that would have earned
the company billions.
McGlade made the trade — together with fellow
Intelsat insiders Silver Lake and BC Partners — via a $246
million block sale of 10 million shares, the lawsuit says. Weeks
later, on Nov. 18, the FCC rejected Intelsat’s proposal to run
the sale of government-owned airwaves it had been using for TV
and radio communications — squashing its dreams of a $7
billion-plus windfall. By May, the company had filed for
bankruptcy protection. The stock, which had been trading at
around $23 a share ahead of the insider selling, closed Friday
at 72 cents a share..
The Board of
Directors and Volunteers of the Intelsat Retirees and Alumni Association
wish you peace, joy and good health during your holidays celebrated and a
Happy, Healthy and Prosperous New Year 2021 ahead!
Trial Date Set
for the SES + Intelsat Legal Dispute
Posted 7 December
2020
Intelsat’s
bankruptcy court on December 3 said the dispute
between SES
Americomand
Intelsat would go to trial next June — the news coincides with a
126-page filing to Intelsat’s court from SES that pulls no punches in
its claims.
At the heart of the legal
dispute between SES and Intelsat is an argument over Intelsat’s handling
of an alleged 50-50 agreed division within the C-Band
Alliance (CBA) and how the FCC ‘incentive’ payments over the
reallocation of both satellite operators’ C-band frequencies would be
allocated. SES is claiming $1.8 billion from Intelsat.
The FCC-organized auction over
the sale of the spectrum is now occurring.
The SES vs Intelsat legal action
kicked off with a July 14 claim lodged by SES where SES claimed damages
and which included alleged breaches of contract, fiduciary duties and
unjust enrichment. Intelsat firmly rejected the claim and, in October,
added in its own allegations that SES had “improperly
shared” a confidential report with the FCC and that the SES claims
are without merit.
We are pleased to Welcome the following new members to the Intelsat
Retirees and Alumni Association:
October
2020
Paul Tan William Wu
Welcome New
Members
Posted: September 14, 2020
We are pleased to Welcome the following new members to the Intelsat
Retirees and Alumni Association:
September
2020
James (Jimmy) Ferrara Darren Hutchinson Carmen
Nelson Sanjay Singhal Dianne VanBeber
Intelsat
to Acquire Commercial Aviation Business of Gogo
Posted: 31 August
2020
MCLEAN, Va.--(BUSINESS
WIRE)--Intelsat (OTC:
INTEQ), operator of the world’s largest and most advanced
satellite fleet and connectivity infrastructure, today announced
that it has entered into a definitive agreement to acquire the
commercial aviation business of Gogo (NASDAQ: GOGO), the largest
global provider of in-flight broadband connectivity, for $400
million in cash, subject to customary adjustments.
The transaction further propels Intelsat’s
efforts in the growing commercial in-flight connectivity market,
pairing its high-capacity global satellite and ground network
with Gogo’s installed base of more than 3,000 commercial
aircraft to redefine the connectivity experience.
Gogo’s leading commercial aviation
business provides Intelsat with key airline relationships and
customer-facing capabilities, including a leading software
platform, ISP and network management infrastructure. It
currently serves 21 commercial airlines, including 9 of the top
20 global carriers.
We have lost
contact with these members below. If you have any information on
how to contact them, please send us an EMail at:
info@myiraa.comm
John Crispin Lee Huffman
Welcome New
Members
Posted: August 27, 2020
We are pleased to Welcome the following new members to the Intelsat
Retirees and Alumni Association:
August
2020
Yvonne Graham Neni Gray Javed Hashmi Brian Henderson Van McDevitt
Vishnu Sahay
Herminia Salazar
FCC Concludes
First Mid-Band 5G Auction
Posted:
26 August 2020
By
Colin Mann | August 26, 2020
The US’s FCC has confirmed what it describes as the successful
conclusion of bidding in its auction of Priority Access Licenses in the
3550-3650 MHz band for 5G, raising some $4.5 billion, although it has
yet to name the successful bidders. The auction made available the
greatest number of spectrum licences ever in a single FCC auction.
Click
HERE
for
further details from
Advanced Television
Intelsat
Announces Successful Launch of Galaxy 30 Satellite and Northrop
Grumman's
Second Mission Extension Vehicle
Posted:
15 August
2020
McLean, Va. – August 15, 2020 – Intelsat,
operator of the world’s largest integrated satellite and terrestrial
network, announced the successful launch of Galaxy 30, a geosynchronous
communications satellite that will primarily provide high-performance
television distribution service to Intelsat’s North American customers.
Northrop Grumman’s Mission Extension Vehicle 2 (MEV-2)
was part of the same successful launch today. The Intelsat 10-02
satellite is scheduled to be its first customer in early 2021.
The Northrop Grumman-manufactured Galaxy 30 and MEV-2
launched on the Arianespace Ariane 5 rocket from the Guiana Space Center
near Kourou, French Guiana at 6:04 p.m. EDT. Galaxy 30 separated from
the rocket at 6:31 p.m. EDT, and Intelsat confirmed its signal
acquisition at 7:02 p.m. EDT.
Galaxy 30 is the first satellite in Intelsat’s Galaxy
fleet refresh plan and will replace Galaxy 14 at 125 degrees west once
it is in service in early 2021. The Intelsat Galaxy fleet is the most
reliable and efficient media content distribution system in North
America, offering customers an unmatched penetration of cable head-ends.
We are pleased to Welcome the following new members to the Intelsat
Retirees and Alumni Association:
July
2020
Patrick Drissel Luis F. Gonzalez Cecilia Lewis
Peery B. Lewis (Britt)
C-Band:
SES Wants $1.8bn from Bankrupt Intelsat
Posted:
15 July
2020
By
Chris Forrester July 15, 2020
SES Americom, the US division of the Luxemburg-based
satellite operator, is seeking $1.8 billion (€1.5bn) in damages from
Intelsat which is in bankruptcy.
SES is alleging that Intelsat has breached the contract
between the two operators which was agreed to handle the sale of C-band
frequencies over the US.
The SES filing, lodged on July 14th, argues that Intelsat
and its subsidiary entities are in violation of that contract and
related fiduciary duties related to the C-band consortium agreement.
SES seeks compensation and punitive damages. It also
wants attorney fees and other expenses in relation to arguing the C-band
claim and costs relating to litigating the claim.
Click
HERE
for
further details from
Advanced Television
Bankruptcy Court
Approves $17M Intelsat Bonus Plan
Posted: 2 July 2020
By
Rachel Jewett | July 2, 2020
A bankruptcy court has approved
Intelsat's request for an employee incentive pan worth $17 million,
despite an objection from the U.S. Trustee overseeing the cased.
The U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond
Division, approved the bonuses as part of a Key Executive Incentive Plan
(KEIP) in cour documents filed June 30. The incentives are tied to
certain targets like meeting Cband clearing deadlines.
Six executives are eligible to recieve a maximum of $17,087,561.
CEP Stephen Spengler could reeive a maximum amount of $6,974,100.
The other eligible executives are: CFO David Tolley; General
Counsel Michelle Bryan; Chief Services Officer Michael DeMarco; CCO
Samar Halawi; and Senior Vice President of Strategy and Planning Bruno
Fromont.
Acting U.S. Trustee Jon Fitzgerald III with the
U.S. Department of Justice filed an objection to the bonuses on June 23,
aruguing the plan did not set stringent enough performnce goals, and the
bonuses are not tied to cash flow and will be paid even if the debtors
sustain losses. The objection pointed to $6.9 million in retention
bonuses
pointed to $6.9 million in retention bonuses paid to Intelsat executives
shortly before the company filed for bankruptcy. CEO Stephen Spengler
received $1 million, according to SEC filings.
Intelsat Extends
Liquid Telecom Partnership Across Africa
Posted 29June
2020
Satellite network operator Intelsat
S.A. INTEQ
recently announced the extension of its partnership with Liquid Telecom
to deliver avant-garde and reliable Internet connectivity in the rural
areas of Africa by leveraging its high-throughput satellite fleet.
Markedly, the multi-year strategic agreement between the two companies
underscores Intelsat’s commitment to provide seamless broadband
connectivity for the development of educational institutions and local
businesses, thereby strengthening growth of its critical communications
infrastructure across the continent.
Backed by a unique offering of innovative digital services, Liquid
Telecom is Africa’s leading communications solutions provider that
caters to nearly 13 countries with high-speed connectivity. Further, it
offers best-in-class hosting and co-location services to various mobile
operators, enterprises and media firms. The company operates
state-of-the-art data centers in Cape Town, Johannesburg and Nairobi. It
reportedly established Africa’s largest independent fiber network,
spanning more than 70,000 kilometers. With leading cloud-based services
such as Microsoft Corporation’s MSFT Azure and Office 365, it offers a
steady communications infrastructure that prioritizes traffic within
Africa to reduce latency.
Click
HERE for
further details from Zacks Equity Research
Intelsat, SEC
Detail C-Band Transition Plans
Posted:
22 June 2020
By
Rachel Jewett | June 22, 2020
Intelsat and SES both
filed their C-band spectrum transition plans with the FCC last week on
June 19. The operators are working to meet the FCC’s accelerated
clearing timeline to clear 100 megahertz of mid-band spectrum for
commercial 5G deployment by the end of 2021, and another 180 megahertz
two years later. The operators will be eligible to receive incentive
payments, in addition to relocation costs, if they clear the spectrum on
the FCC’s timeline. Intelsat is eligible to receive $4.87 billion, and
SES is eligible to receive $3.97 billion.
Intelsat’s plan estimates
the total cost of its C-band replacement satellite portion of the
transition plan, including launch, insurance, and program management, to
be $1.18 billion.
The operator is planning for the
construction and launch of seven new satellites to create sufficient
capacity to repack services and effectuate spectrum clearing. Last
week, Intelsat announced that Maxar
Technologies will
build and deliver four satellites, and Northrop
Grumman will build and deliver two satellites. The operator is
also currently in negotiations with manufacturers for a seventh
satellite.
Intelsat
Procures New C-Band Spectrum Transition
Posted: 15 June 2020
Contracts in place with U.S. manufacturers Maxar Technologies and
Northrop Grumman
June 15, 2020
MCLEAN, Va.--(BUSINESS
WIRE)--Intelsat,
operator of the world’s largest integrated satellite and terrestrial
network, today announced that it has contracted for new satellites with
U.S. manufacturers, a necessary step to meet the accelerated C-band
spectrum clearing timelines established by the Federal Communications
Commission (FCC) earlier this year.
Intelsat has entered into two new agreements; one with Maxar
Technologies to build and deliver four satellites, and another with Northrop
Grumman to build and deliver two satellites. Intelsat is currently
in negotiations with manufacturers for a seventh satellite required to
support its C-band transition.
Later this week, Intelsat plans to file its full C-band
spectrum transition plan with the FCC in accordance with the FCC’s
revised timeline. The plan will provide additional manufacturing and
launch details for new satellites and outline the steps that Intelsat
will take to reconfigure its terrestrial-based infrastructure and to
ensure a successful transition.
Busy Bankruptcy
Court for Intesat
Posted 11 June
2020
As well as approving
a $1 billion ‘debtor
in possession’ loan, Intelsat’s bankruptcy court had an extremely busy
‘omnibus’ day on June 9th dealing with dozens of applications and
motions.
The court
approved the rate of interest that Intelsat must pay to the lenders
Credit Suisse on the $1 billion loan. Intelsat has to pay an immediate
1.5 per cent, and then an expensive 3.6 per cent (the “ticking fee”) per
month just like a taxicab fare and designed to encourage Intelsat not to
stretch the whole bankruptcy process out too long.
While the $1 billion loan grabbed the most headlines, the
court also agreed a motion that – in essence – permits the sale of
Spaceflight Industries, in which Intelsat has a $50 million loan, to
Mitsui & Co. Intelsat had made the loan to Spaceflight because it wanted
to participate in a Spaceflight subsidiary (BlackSky, which is an Earth
observation business). Intelsat still has a “right to purchase” option
in Spaceflight/BlackSky.
We are pleased to Welcome the following new members to the Intelsat
Retirees and Alumni Association:
June
2020
Tom Barr Patty Harrison Alan Shingler Maria
Stefanita
Investors Accuse
Intelsat Insiders of Trading on C-Band News
Posted: 8 June 2020
Law360 (June 8, 2020. 5:07 PM
EDT) --
Investors claim major stakeholders in satellite giant Intelsat
dodged $185 million in losses by trading on nonpublic information
about a Federal Communications Commission plan to publicly auction
C-Band spectrum.
Three institutional investors filed suit in California federal court
Friday against BC Partners LLP and Silver Lake Group LLC, two
investment firms that unloaded $246 million worth of their Intelsat
stock on Nov. 5, the same day the FCC allegedly told Intelsat's CEO
the agency would not approve Intelsat's proposal for a private sale
of the spectrum.
The FCC said Nov. 18 that a public auction would be held instead,
meaning that Intelsat would no longer rake in the more than $7
billion it had expected had the private sale gone through and
leading it to file for bankruptcy in May, according to the
complaint. Two days after the announcement, Intelsat's stock price
plunged by nearly 80%, the investors say.
"By offloading significant holdings of Intelsat common stock ahead
of the FCC's announcement, BC Partners and Silver Lake, who were
also parties to joint shareholding agreements, avoided approximately
$185 million in losses," the putative class action alleges. "Their
actions constitute blatant violations of their obligation to
disclose or abstain from trading and present a classic case of
insider trading."
Intelsat, a Luxembourg-based satellite operator that provides
television and radio communications, started working with the FCC in
2017 to determine whether it could free up a portion of its coveted
3.7 to 4.2 gigahertz band, or C-Band, for future 5G use, according
to the suit.
The company and other satellite operators proposed a private sale
process that they would manage and could reap billions of dollars —
in a June 2018 report, RBC Capital Markets predicted that a private
sale would raise Intelsat's target stock price from $5 to $30,
according to the complaint.
On Nov. 5, FCC senior counsel met with Intelsat's CEO to review its
proposal for a private auction of some C-Band spectrum, but "based
on the conduct of the parties and the timing and sequence of
events," it appears the CEO was told the FCC "was unlikely to
approve Intelsat's proposal," the suit says.
After the market closed that day, Intelsat's controlling
shareholders, BC Partners and Silver Lake, began urgently shopping
10 million Intelsat shares at a price of $24.60 per share,
representing a 6% discount on its closing price that day, the suit
says. The investors claim the firms instructed their broker to
insist that buyers had only an hour to decide whether to purchase.
"The shares were sold the next day to investors who had no idea what
had transpired at the November 5, 2019 meeting with the FCC,"
according to Friday's suit. "To the contrary, they, like the rest of
the investing public, had been led to believe that the private sale
was on track and when consummated would result in Intelsat receiving
more than $7 billion for its share of the spectrum."
BC Partners has representation on Intelsat's board of directors
along with an information rights agreement with Intelsat, which
Silver Lake also has, providing both stakeholders with
"contractually bargained-for access to material, non-public
information about Intelsat," the investors allege, including
information about the Nov. 5 meeting.
The two stakeholders had also never sold a single share of Intelsat
stock until their "fortuitously timed sale of 20% of their total
position" after trading closed on Nov. 5, the suit claims.
On Nov. 18, the FCC rejected Intelsat's proposal, and FCC Chairman
Ajit Pai appeared to foreclose any future prospects, backing a
public rather than private auction of the C-Band spectrum.
Intelsat's stock price plunged, wiping out $700 million in market
capitalization in two days. On May 14, Intelsat filed for Ch. 11
protection.
The institutional investors are hoping to hold the two firms, along
with Intelsat directors and BC Partners principals Raymond Svider
and Justin Bateman, liable for the alleged stock drops. Individual
investor James Hill also filed a similar suit in the same court back
in April.
Silver Lake declined to comment. BC Partners and counsel for the
investors did not immediately respond to requests for comment
Monday.
The investors are represented by Marc M. Seltzer and Krysta Kauble
Pachman of Susman Godfrey LLP and Andrew J. Entwistle of Entwistle &
Cappucci LLP.
Counsel information for the investment firms was not available
Monday.
The case is FNY Partners Fund LP et al v. BC Partners LLP et al.,
case number 3:20-cv-03741, in the U.S. District Court for the
Northern District of California.
Intelsat (INTEQ- Free
Report)
came out with a quarterly loss of $1.48 per share versus the Zacks
Consensus Estimate of a loss of $1.37. This compares to loss of $0.87
per share a year ago. These figures are adjusted for non-recurring
items.
This quarterly
report represents an earnings surprise of -8.03%. A quarter ago, it was
expected that this communications and satellite company would post a
loss of $0.99 per share when it actually produced a loss of $0.81,
delivering a surprise of 18.18%.
Over the last
four quarters, the company has surpassed consensus EPS estimates just
once.
Intelsat, which
belongs to the Zacks Satellite and Communication industry, posted
revenues of $458.82 million for the quarter ended March 2020, missing
the Zacks Consensus Estimate by 5.79%. This compares to year-ago
revenues of $528.45 million. The company has topped consensus revenue
estimates three times over the last four quarters.
The
sustainability of the stock's immediate price movement based on the
recently-released numbers and future earnings expectations will mostly
depend on management's commentary on the earnings call.
Intelsat shares
have lost about 93.5% since the beginning of the year versus the S&P
500's decline of -3.3%.
C-Band: Eutelsat Complains Over Intelat/SES 'Incentives'
Posted 3 June
2020
By Chris Forrester June 3, 2020
Eutelsat, not for
the first time, has formally complained to the FCC over the Commission’s
ruling that it would pay around $5 billion to both Intelsat and SES in
‘incentive payments’ for clearing certain C-band frequencies over the
USA.
In essence,
Eutelsat is fearful that the payments – and the related reimbursements
of actual costs of new C-band satellites over the US – will mean that
Intelsat and SES will use the cash to expand functionality and coverage
beyond a one-for-one simple replacement scheme. Eutelsat says the FCC’s
official estimates (aided by analysis by RKF Engineering Solutions) of
the costs of these replacement satellites are far too high and thus are
more sophisticated satellites than currently being used.
Both Intelsat and SES are looking to order between four
and six satellites to replace the lost frequencies. SES, speaking to
Advanced-Television on June 2nd,
said that it was still in negotiation on the satellite contracts but it
was likely that six satellites would ordered, although two would be
ground spares.
EXCLUSIVE: Intelsat Shareholders Send
Angry Letter Asking for Representation in Bankruptcy Court
Posted: 28 May 2020
By
Rachel Jewett | May 28, 2020
Intelsat shareholders
are banding together to make sure their interests are represented in the
company’s Chapter 11 bankruptcy proceedings, according to a letter that
was filed with Acting United States Trustee John Fitzgerald III, who
monitors the case.
Via Satellite obtained
a copy of the letter, which was signed by a group of 73 Intelsat
shareholders representing 2.3 million shares. In the letter, the
shareholders ask Fitzgerald for an equity committee to represent them.
The letter details common shareholders’ concerns that they are not being
fairly treated by Intelsat management, and as the two largest
shareholders, Cyrus
Capital Partners and Appaloosa
LP, own
both equity and debt in the company, they may be willing to accept a
deal that will wipe out common shareholders.
Click
HERE for
further details from Zacks
Equity Research
Welcome New
Members
Posted: 26 May 2020
We are pleased to Welcome the following new members to the Intelsat
Retirees and Alumni Association:
May
2020
Pasquale Delli Carpini Bill Pagden Jim Redpath
Intelsat Opts
into FCC Accelerate C-Band Clearing Plan
Posted: 26 May 2020
Company mobilizes operations to accelerate C-band clearing for U.S.
5G
May 26, 2020
04:23 PM Eastern Daylight Time
MCLEAN, Va --
(BUSINESS WIRE) -- Intelsat, operator of the worl's largest integrated
satellite and terrestrial network, today filed a written commitment with
the U.S. Federal Communications Commissin (FCC) to accelerate clearing
of the U.S. C-band spectrum. Intelsat comleted the filing in
advance of the FCC's May 29 deadline.
Intelsat (I)
Files for Bankruptcy, Aims to Emerge Stronger
Posted: 15 May 2020
Intelsat S.A. I
has reportedly filed for bankruptcy protection in order to raise cash
and prepare the spectrum for public auctioning as it remains weighed
down by the huge debt burden. The company expects that Chapter 11
bankruptcy protection funding will enable it to tide over the storm
until billions of dollars are made available through public auctioning
of its C-band spectrum later this year.
In concurrence with the bankruptcy filing, Intelsat has
earmarked $1 billion in debtor-in-possession financing to sustain
operations during the proceedings and make necessary investments to prop
up the spectrum for the auction. The company expects to emerge stronger
from this financial restructuring process with greater fiscal viability
to continue launching new satellites, building a comprehensive ground
network and adding innovative services to its portfolio.
Despite all these endeavors, the stock has plummeted
97.6% in the past year. Notably, Intelsat’s shares declined sharply in
November 2019 when investors resorted to panic selling as the Federal
Communications Commission (“FCC”) lent its support to the Congress’ move
to hold a public auction for its C-band spectrum. The stock declined
67.1% in 2019, making it the worst performer in the Zacks Satellite and
Communication industry.
FCC Plans to
Auction C-Band Airwaves Despite Intelsat Bankruptcy
Posted: 14 May 2020
by Todd Shields
(
Bloomberg)
-- The Federal Communications Commission said it would move
forward with an auction of valuable airwaves following the
bankruptcy filing of Intelsat SA, which occupies many of the
frequencies to be sold.
Intelsat weighted down by almost $15 billion of debt, filed
for bankruptcy protection as part of efforts to raise caseh
needed to prepare its spectrum for a U.S. government
auction.
The FCC "will continue to move forward with the C-band
auction proces," a spokesman said in an emailed message
Thrusday. The agency "appreciates" Intelsat's
statement that a catalyst for its filing is a desire to get
ready for the auction, the spokesman said.
The agency has set a Dec. 8 start date for the airwaves
sale. Preparations must begin months ahead of that
time, as current ocupants of the airwaves make room for new
wireless users. Intelsat said it needs to spend more
than $1 billion to prepare long before costs are reimbursed.
With its Chapter 11 filing in Virginia, the Luxembourg-base
company said it lined up $1 billion in financing to fund
operations during bankruptcy roceedings and make investments
required ahead of the auction.
Intelsat
Undertakes Financial Restructuring to Pave the Way for Future Innovation
and Growth
Posted 14 May
2020
Strengthened Balance Sheet Will Complement Strong
Operating Model
Process Intended to Enhance Liquidity to Support
Accelerated C-Band Clearing and Continued Investment; Expected to Result
in a Substantial Reduction of Legacy Debt Burden
Commitment Obtained for $1 Billion in
Debtor-in-Possession Financing
Service to Customers to Remain at Same Level of
Excellence
PRESS RELEASE
14 MAY 2020
McLean, VA – May 13, 2020 – Intelsat
S.A. (NYSE: I) (“Intelsat” or the “Company”), operator of the world’s
largest and most advanced satellite fleet and connectivity
infrastructure, today announced that it has undertaken a financial
restructuring to position the Company for long-term success. The
restructuring process is intended to enhance the Company’s liquidity and
will likely result in a substantial reduction of Intelsat’s legacy debt
burden, allowing for Intelsat to emerge with a strengthened balance
sheet to complement its strong operating model and future growth plans.
One of the primary catalysts for restructuring the
balance sheet now is Intelsat’s desire to participate in the accelerated
clearing of C-band spectrum under the Federal Communications Commission
order in support of a build-out of 5G wireless infrastructure in the
United States. To meet the FCC’s accelerated clearing deadlines and
ultimately be eligible to receive $4.87 billion of accelerated
relocation payments, Intelsat needs to spend more than $1 billion on
clearing activities. These clearing activities must start immediately,
long before costs begin to be reimbursed. The Company is also managing
the economic slowdown impacting several of its end markets caused by the
COVID-19 global health crisis.
“This is a transformational moment in the history of our
company,” said Stephen Spengler, Chief Executive Officer of Intelsat.
“Intelsat is the pioneer and foundational architect of the satellite
industry. For more than 50 years, we have been respected for quality,
innovation, sector leadership, and premium services. Our success has
come despite being burdened in recent years by substantial legacy debt.
Now is the time to change that. We intend to move forward with the
accelerated clearing of C-band spectrum in the United States and to
achieve a comprehensive solution that would result in a stronger balance
sheet. This will position us to invest and pursue our strategic growth
objectives, build on our strengths, and serve the mission-critical needs
of our customers with additional resources and wind in our sails.”
Intelsat Files
for Bankruptcy Protection
Posted: 14 May 2020
Darrell
Etherington | TechCrunch-May 14, 2020
Global satellite
operator
Intelsat
has voluntarily filed for Chapter 11 bankruptcy protection, the company
announced late on Wednesday. Intelsat has attempted to
position this
as a positive momentthat sees it
embark on a "financial restructuring" project to enable its future growth, but a
bankruptcy filing is seldom cause for celebration.
The company cites
a need to participate in the FCC's C-band spectrum clearing for 5G
network build out in the U.S. as one of the factors behind its decision
to file, as well as "managing the economic slowdown impacting several of
its markets caused by the COVID-19 global heath crise."
Intelsat notes
that its current plan involves no changes to the day-to-day operation of
the company, or any reduction in the headcount. The company also
said that it has secured $1 billion in committed new financing, which
will come in the form of debtor-in-position funds, subject to court
approval. That just describes any company that plans to continue
to operate its business while also undergoing Chapter 11 bankruptcy
proceedings.
Sen. Kennedy: Intelsat Bankruptcy Changes
C-Band Compensation Equation
Posted: 14 May 2020
Says FCC should reverse its course and keep money for
the treasury
John Eggerton | May 14, 2020
Satellite services provider Intelsat has announced a
"financial restructuring to position [it] for long-term success" at what
it called a "transformational moment in the history of our company," or,
as Intelsat critic Sen. John Kennedy (R-La.) put it: "Intelsat’s
decision to file for bankruptcy."
On that news, whichever way one looks at it, Kennedy said
the FCC should "withdraw its offer, take control of America’s spectrum
and save taxpayers billions of dollars instead of shelling out that
money to foreign companies."
He said the Intelsat filing makes it clear that Intelsat
"had no intention of accepting the FCC’s deal." Intelsat in a tweet on
the restructuring said its business would continue "without
interruption."
That "offer" was a reference to the FCC's decision to
provide billions of dollars in incentives and auction proceeds to
Intelsat and other satellite service providers to give up 300 MHz of
spectrum (out of a total of 500 MHz) in the C-Band for 5G.
Click
HEREfor
further details from
MultiChannel News
Intelsat Files for Chapter 11 Before 5G
Spectrum Sales
Posted: 14 May 2020
Allison McNeeley and Steven church | Bloomberg May 14, 2020
(Bloomberg) --
Intelsat SA, the satellite company weighed down by almost $15 billion of
debt, filed for bankruptcy protection as part of efforts to raise cash
needed to prepare its spectrum for a U.S. government auction.
With its Chapter
11 filing in Virginia, the Luxembourg-based company said it lined up $1
billion in financing to fund operations during bankruptcy proceedings
and make investments required ahead of the auction.
Under rules set
by the Federal Communications Commission, Intelsat may collect $4.86
billion for quickly giving up the so-called C-band spectrum so the
airwaves can be used by mobile phone companies to provide 5G services.
The satellite company uses the spectrum to beam TV and radio programs to
stations, but can give up part of it while still serving customers on
frequencies it retains.
“We intend to
move forward with the accelerated clearing of C-band spectrum in the
United States and to achieve a comprehensive solution that would result
in a stronger balance sheet,” Stephen Spengler, Intelsat CEO, said in
the statement.
As reported, a key
catalyst for the move is the company's desire to reap the benefits
(a multibillion-dollar payout in particular) of the FCC's clearing
C-band spectrum for use in 5G wireless infrastructure.
In order to be eligible to
receive $4.87B in accelerated relocation payments, the company needs
to spend more than $1B on clearing activities, it says. And it's
secured a commitment for $1B in debtor-in-possession financing.
It's filed first-day motions
in order to maintain business-as-usual operations. No changes to
operations or workforce are planned.
The motions cover Intelsat
and certain subsidiaries; Intelsat General (serving U.S. commercial,
government, and Allied military customers) is not part of the
bankruptcy filing.
The company's publishing
more detailed information at Intelsatonward.com,
and court filings can be found here.
Intelsat Files
for Chapter 11 Bankruptcy
Posted: 14 May 2020
Allison McNeeley and Steven church | Bloomberg May 14, 2020
(Reuters) - Satellite operator Intelsat SA said late on Wednesday that
it filed for Chapter 11 bankruptcy protection, making it the latest
casualty of severe business disruptions caused by the COVID-19 pandemic.
The company listed assets and liabilities in the range of $10 billion to
$50 billion, according to a filing in the U.S. Bankruptcy Court for the
Eastern District of Virginia.
Intelsat also said it had received $1 billion in debtor-in-possession
financing.
The pandemic has inflicted widespread financial pain across sectors
including retail and aviation, with many companies considering
bankruptcy options as a way to restructure their debt load.
The company's Chapter 11 filing comes more than a month after it
suspended its 2020 outlook and said it would delay filing its
first-quarter results.
Chapter 11
Filing Gives Intelsat Leverage in C-Band Auction
Posted: 14 May 2020
By Mark Holmes
Rachel Jewett | May 14, 2020
Intelsat has
positioned its filing
for Chapter 11 bankruptcy protection as
a move that will give the company liquidity to support clearing the
C-band spectrum — but it’s possible that bankruptcy proceedings could
put the auction at risk.
Intelsat and some of its subsidiaries filed on Wednesday
in the U.S. Bankruptcy Court for the Eastern District of Virginia,
Richmond Division.Intelsat,
which operates a fleet of about 50 satellites, had approximately $14.7
billion principal in outstanding third party debt at the end of 2019,
according to the company’s most recent 10-K filing with the Securities
and Exchange Commission.
The company’s upbeat “Intelsat Onward” announcement made
clear that its desire to receive accelerated relocation payments for
clearing C-band spectrum was a factor in filing. Intelsat is eligible to
receive the largest share, $4.87 billion, about half of the total
payments. Intelsat said it needs to spend more than $1 billion on
clearing activities, which must start immediately, and costs will not be
reimbursed until later.
Intelsat (NYSE:I) has made a sudden leg down, now -9%,
following headlines from Reorg that the company may file for Chapter
11 bankruptcy as soon as tonight.
Bonds have been slipping
toward record lows as it nears the expiraton of a 30-day grace
period on some of its debt. It had skipped April 15 interest
payments on some debt. .
And by yesterday, its Luxembourg 8.125% notes due 2023 fell to 6
cents on the dollar
Ahead of the April 15 deadline, JPMorgan was reportedly shopping a
debtor-in-possession loan for the company.
Intelsat needs fund to partake in the multibillion-dollar windfall
of a public midband spectrum safe, but lenders may be wary of providing that
outside of bankruptcy.
Shares closed today $.7881/share
Intelsat and
Andesat Bring Mobile Broadband to Rural Communities in Peru
Posted: 12 May 2020
Andesat Perus launches "#TeConectamosPeru" to expand
life-changing cellular and internet coverage to remote areas
of Latin America
CORAL GABLES, Fla. &
LIMA, Peru ((BUSINESS
WIRE)--Intelsat (NYSE:
I) and Andesat are
parterning to bring end-to-end mobile broadband (3G) service
to remote communities across Peru. The two companies
have develope a new model that will quickly and efficiently
bring life-changing 3G access to 154 rural Peruvian
communities in 2020, and as many as 400 remote sites in Peru
over the next 18 months.
Shareholder
Urges Intelsat to Void Defaulting into Bankruptcy
Posted: 5 May
2020
by
Caleb Henry
-
May 5 2020
WASHINGTON — A shareholder is urging Intelsat’s
leadership to quickly make an overdue debt payment to avoid potentially
falling into bankruptcy.
Cyrus Capital Partners, a $4 billion investment advisory
firm with offices in New York and London, said Intelsat appears to be
headed for a Chapter 11 bankruptcy filing after it skipped a $125
million interest payment due April 15.
The skipped payment triggered a 30-day grace period for
Intelsat to complete the payment before defaulting. Intelsat’s
subsidiary Intelsat Jackson, which holds the majority of the operator’s
$14.7 billion debt, owes the late interest payment.
In a letter released May 5, Cyrus Capital said an
Intelsat bankruptcy could severely jeopardize the satellite operator’s
ability to collect up to $4.86 billion in FCC incentive payments for the
rapid clearing of 300 megahertz of C-band spectrum Intelsat uses mainly
for television broadcasting in the United States.
Intelsat has until May 29 to decide whether it will
participate in the FCC’s accelerated spectrum clearing program. A
different Intelsat shareholder, Appaloosa of Short Hills, New Jersey,
urged the company in February to press the FCC for a higher amount even
if it means Intelsat going into bankruptcy.
Global Services Sues FCC Over C-Band
Order
Posted: 5 May 2020
by
Rachel Jewett
-
May, 2020
PSSI Global
Services is suing the FCC over
its plan to reallocate the C-band spectrum for 5G services, arguing the
order approved
in February will
“destroy” its special event satellite broadcast transmission services.
The suit was filed April 28 in D.C. federal court.
PSSI operates a fleet of more than 60 C-band and Ku-band
vehicles and provides live event transmission, distribution and
programming insert reception, including global satellite communication
services. The company said that its Occasional Use (OU) services for
events like the Academy Awards and the NFL Super Bowl are particularly
in jeopardy. OU services use transportable earth stations, which require
satellite Line-of-Sight (LOS) access and transponder frequency clearance
to connect with a particular satellite and transponder.
Were Hedge
Funds Right About Intelsat S.A. (I)?
Posted: 4 May 2020
Asma
UL Husna, Insider Monkey May 4 2020
We hate to say this but, we told
you so. On February 27th we published an article with the title
Recession is Imminent: We Need A Travel Ban NOW and predicted a US
recession when the S&P 500 Index was trading at the 3150 level. We also
told you to short the market and buy long-term Treasury bonds. Our
article also called for a total international travel ban. While we were
warning you, President Trump minimized the threat and failed to act
promptly. As a result of his inaction, we will now experience a deeper
recession (see
why hell is coming).
In these volatile markets we
scrutinize hedge fund filings to get a reading on which direction each
stock might be going. Our extensive research has shown that imitating
the smart money can generate significant returns for retail investors,
which is why we track nearly 835 active prominent money managers and
analyze their quarterly 13F filings. The stocks that are heavily bought
by hedge funds historically outperformed the market, though there is no
shortage of high profile failures like hedge funds' 2018 losses in
Facebook and Apple. Let's take a closer look at what the funds we track
think about Intelsat S.A. (NYSE: I) in this article.
Intelsat S.A. (NYSE:I) shares
haven't seen a s of action during the fourth quarter. Overall, hedge
fund sentiment was unchanged. The stock was in 49 hedge funds'
portfolios at the end of the fourth quarter of 2019. The level and the
change in hedge fund popularity aren't the only variables you need to
analyze to decipher hedge funds' perspectives. A stock may witness a
boost in popularity but it may still be less popular than similarly
priced stocks. That's why at the end of this article we will examine
companies such as Third Pont Reinsurance Ltd (NYSE: TPRE), Hollysys
Automation Technologies Ltd (NASDAQ: HOLI), and Urstadt Biddle
Properties Inc (NYSE: UBA) to gather more data points. Our calculations
also showed that I isn't among the
30 most popular stocks among hedge funds (click for Q4 rankings and
see the video at the end of this article for Q3 rankings).
Click
HERE
for
further details from Yahoo/InsiderMonkey
Shares closed
today $1.13/share
Intelsat Announces New Investor Relations
Vice-President
Posted: 30 April
2020
Industry
veteran brings expertise in cultivating strong relationships with
investment community
Intelsat (NYSE: I), operator of
the world's largest integrated satellite and terrestrial network, today
announced that Tahmin O. Clarke has joined the company as Vice President
of Investor Relations.
Based in
the company’s McLean, Va. office, Clarke is responsible for managing the
company’s relationships with shareholders, bondholders and lenders, and
the equity and fixed income research analyst community. He will report
to Intelsat Executive Vice President and Chief Financial Officer David
M. Tolley.
"Tahmin’s
financial acumen and deep expertise in leading investor communications
in the communications sector will serve as a tremendous asset to us,
especially during this time of industry transition as we evaluate our
future opportunities," said Tolley. "He brings a deep understanding of
the complexities of our sector and a reputation for proactive
relationship-building and stakeholder communications. We’re thrilled to
welcome him to the Intelsat family."
Intelsat
CEO Steve Spangler Talks C-Band, Covid, and Chapter 11
Posted: 28 April 2020
Click
HERE
for the interview by
Mark Holmes of Via Satellite
Welcome New
Members
Posted: 23 April 2020
We are pleased to Welcome the following new members to the Intelsat
Retirees and Alumni Association:
April 2020 Lizbeth Fountain Ivette Fournier Michael Hughes
For the First
Time Ever, a Robotic Spacecraft Caught an Old Satellite and Extended Its
Life
Posted: 17 April
2020
Published FRI APR 17 2020-9:18 AM EDT
Michael Sheetz @THESHEETZTWEETZ
Intelsat's I
S-901
satellite is nearly 20 years old, and well beyond its expected lifespan,
but a small spacecraft built by Northrop
Grumman succeeded
in docking with the satellite and giving it another five years of
service, the companies announced on Friday.
The feat is a space industry first, as extending the life of spacecraft
already in orbit has only been done with human help before – such as the
Hubble telescope servicing missions conducted by NASA astronauts.
Northrop Grumman’s spacecraft MEV-1 successfully docked with IS-901 on
Feb. 25. Intelsat’s satellite was launched in June 2001 and was only
intended to serve for 13 years, providing communications services in the
Atlantic Ocean region. The satellite is in a fixed position above the
Earth in what is known as geosynchronous orbit – tens of thousands of
miles up to provide as wide a coverage area as effectively possible.
Intelsat
Seeks Bankruptcy Protection Fund for Sustainability
Posted: 15 April 2020
Intelsat S.A. I
is reportedly seeking the cushion of a bankruptcy loan to
sustain operations as its shares continue a steady
downtrend. The company expects that Chapter 11 bankruptcy
protection funding will enable it to tide over the storm
until billions of dollars are made available through public
auctioning of its C-band spectrum later this year.
Intelsat’s shares declined sharply in
November 2019 when investors resorted to panic selling as
the Federal Communications Commission (“FCC”) lent its
support to the Congress’ move to hold a public auction for
its C-band spectrum. The stock declined 67.1% in 2019,
making it the worst performer in the Zacks Satellite and
Communication industry.
Click
HERE
for
further details from
Yahoo/Zacks Equity Research
Shares closed today
$1.04/share
Why Intelsat's 5G Dreams Are Crashing to
Earth
Posted 14 April
2020
By Aaron PressmanApril 14, 2020, 2:30 PM EDTSatellite communications cmpany
Intelat is close to bankrptcy after a years-long gambit to profit
from selling some of its airwave licenses for 5G wireless networks
has fallen short.The company, responsible for
transmitting most programming for cable and broadcast netorks acros
the country ith its satellites, is lining up financing known as a
debtor-in-possession loan, used to maintain operations during a
Chapter 11 bankruptcy, Bloomberg reported on Tuesday. The
company had earlier hired investment bank PJT Partners and law firm
Kirkland & Ellis for a possible filing, Bloomberg noted.The rapid financial demis comes
after the Federal Communications Commission rejected a plan from
Intelsat and other satellite communications companies to et them
directly sell spectrum know as the C-band to wireless carriers that
could use the airwaves for 5G networks. Analysts said such a
sale could bring $30 billion to $50 billion in bids from telecom
companies desperate for more airwaves to use for superfast 5G
service.But the plan ignited heated and
bipartisan opposition in Congress to letting foreign-based satellite
companies collect such huge sums. among current C-band
holders, Intelsat and SES are legally based in Luxembourg, Telesat
is Canadian, and Eutelsat Communications is based in France.
Intelsat Seeks Bankruptcy Loan While
Awaiting Key Spectrum Sale
Posted 14 April
2020
By Katherine Doherty, Sridhar
Natarajan, and Allison McNeelyApril 13, 2020, 9:15 PM EDt
Updated on April 14, 2020, 10:02 AM EDT
Intelsat SA is seeking backers for a bankruptcy loan that would keep
the satellite service in business under Chapter 11 court protection
while it’s waiting for billions of dollars in proceeds from a government
spectrum auction. Its bonds led decliners in the high-yield market.
JPMorgan Chase & Co. is shopping the debtor-in-possession loan to
institutional investors, many of whom specialize in financial
restructuring, according to people with knowledge of the plans. The loan
of about
$750 million would help fund necessary improvements to Intelsat’s
spectrum ahead of the C-Band auction set to begin later this year.
No formal decisions have been made on the loan, said one of the
people. The situation remains fluid and plans could change, depending on
market conditions,
the people said. They asked not to be identified discussing the private
arrangements.
The company’s bonds fell Tuesday, with its 8.5% notes due 2024
dropping 4.8 cents on the dollar to 56.9 cents, according to Trace data.
Are Options Traders Betting on a Big Move
in Intelsat (I) Stock?
Posted: 27
March 2020
Investors in Intelsat
S.A. I need to pay close attention to the stock based on moves
in the options market lately. That is because the Jun 19, 2020 $3.00
Call had some of the highest implied volatility of all equity options
today.
What is Implied
Volatility?
Implied volatility shows how much movement the market is
expecting in the future. Options with high levels of implied volatility
suggest that investors in the underlying stocks are expecting a big move
in one direction or the other. It could also mean there is an event
coming up soon that may cause a big rally or a huge sell-off. However,
implied volatility is only one piece of the puzzle when putting together
an options trading strategy.
What do the Analysts
Think?
Clearly, options traders are pricing in a big move for
Intelsat shares, but what is the fundamental picture for the company?
Currently Intelsat is a Zacks Rank #3 (Hold) in the Satellite and
Communication industry that ranks in the Top 31% of our Zacks Industry
Rank. Over the last 60 days, no analysts have increased their earnings
estimates for the current quarter, while one analyst has revised the
estimate downward. The net effect has taken our Zacks Consensus Estimate
for the current quarter from a loss of $1.31 per share to a loss of
$1.13 in that period.
Click
HERE
for
further details from
Yahoo/Zacks Equity Research
Shares closed today $1.76/share
Intlesat (I)
Flat as Market Gains: What You Should Know
Posted: 26 March
2020
In the latest
trading session, Intelsat (I) closed at $1.92, marking no change from
the previous day. This change lagged the S&P 500's 6.24% gain on the
day. Elsewhere, the Dow gained 6.38%, while the tech-heavy Nasdaq added
5.6%.
Heading into
today, shares of the communications and satellite company had lost
55.56% over the past month, lagging the Computer and Technology sector's
loss of 17.19% and the S&P 500's loss of 21.22% in that time.
Wall Street will
be looking for positivity from I as it approaches its next earnings
report date. The company is expected to report EPS of -$1.13, down
29.89% from the prior-year quarter. Meanwhile, our latest consensus
estimate is calling for revenue of $488.36 million, down 7.59% from the
prior-year quarter.
Click
HERE
for
further details from
Yahoo/Zacks Equity Research
Shares closed today
$1.92/share
Intelsat (I)
Down 54.6% Since Last Earnings Report: Can it Rebound?
Posted: 21 March 2020
It has been about
a month since the last earnings report for Intelsat (I). Shares have
lost about 54.6% in that time frame, underperforming the S&P 500.
Will the recent
negative trend continue leading up to its next earnings release, or is
Intelsat due for a breakout? Before we dive into how investors and
analysts have reacted as of late, let's take a quick look at the most
recent earnings report in order to get a better handle on the important
catalysts.
Intelsat Q4 Loss
Narrower Than Expected, Revenues Fall
Intelsat reported relatively modest fourth-quarter 2019 results with
both the top and bottom line exceeding the respective Zacks Consensus
Estimate. However, revenues were down year over year as media revenues
declined due to the increasing importance of digital platforms content.
Click
HERE
for
further details from Yahoo/Zacks Equity
Research
Intelsat (I) Collaborating with SpaceX
for IS-40e Launch
Posted 18 March
2020
After the launch of Intelsat
S.A.’s
I 35e geostationary communications satellite (COMSAT), the
pioneer of space technology services is all set to launch
another high-throughput satellite into the space — Intelsat
40e (IS-40e). Equipped with best-in-class capabilities of
managed hybrid-connectivity, Intelsat has teamed up with a
space transportation services company — SpaceX — for the
launch.
Slated to be launched in 2022, IS-40e will be
manufactured by a leading space technology company — Maxar
Technologies Inc. MAXR. Markedly, the yet-to-be-launched
Intelsat satellite will be sent to its target orbit by
SpaceX’s much-acclaimed Falcon 9 launch vehicle.
Interestingly, this will be SpaceX’s second launch for
Intelsat, the first one being Intelsat 35e in 2017.
Click
HERE
for
further details from
Yahoo/Zacks Equity Research
Shares closed today
$1.625/share
Welcome New
Member
Posted: 15 March 2020
We are pleased to Welcome the following new member to the Intelsat
Retirees and Alumni Association:
March 2020 Patrick Yeung
Implied
Volatility Surfing for Intelsat (I) Stock Options
Posted: 4 March
2020
WASHINGTON — The FCC says it will scrap a $9.7 billion
spectrum clearing incentive package approved last week if Intelsat and
SES don’t both agree to the terms.
Satellite operators Intelsat, SES, Eutelsat, Telesat and
Embratel Star One are eligible collectively to win up to $9.7 billion in
accelerated payments if they can clear 300 megahertz of C-band spectrum
by Dec. 5, 2023 — two years faster than the FCC’s deadline.
But according to a final plan the FCC released March 3,
companies eligible for at least 80% of the accelerated clearing payments
must participate in order for the program to proceed.
Eutelsat, Telesat and Embratel Star One only account for
9% of the accelerated clearing payments, meaning the FCC’s threshold
requires Intelsat and SES involvement.
Payment allocations set
The FCC is offering the $9.7 billion in accelerated
clearing payments to encourage satellite operators to vacate 300
megahertz of C-band spectrum more quickly to make way for cellular
networks’ 5G services. The clearing payments are in addition to
relocation costs, estimated at up to $5.2 billion in the FCC’s plan.
Relocation costs include buying new spacecraft, satellite dishes and
other equipment to continue offering service with less spectrum.
Intelsat is eligible for $4.87 billion in accelerated
clearing payments, up $13.6 million from the FCC’s original plan, but a
far cry from the $5.8 billion to $6.5 billion the company sought in
recent weeks.
FCC Releases
Final C-Band Offer
Posted: 4 March
2020
The FCC released
its final report and order on repurposing C-band spectrum for 5G on
Tuesday, slightly shifting the amounts that satellite operators can
receive in accelerated relocation payments to clear the spectrum
quickly.
The document was released after the FCC
voted 3-5 on Feb. 28 to repurpose the spectrum. Satellite
operators are required to clear the spectrum, and the FCC will hold a
public auction for licenses to that spectrum, starting Dec. 8 of this
year. Satellite operators with licenses for the spectrum will receive
both compensation for the cost to relocate the spectrum and accelerated
relocation payments to incentivize them to clear the spectrum quickly,
$9.7 billion total, divided between Intelsat, SES, Telesat, Eutelsat,
and Star
One.
WASHINGTON — The U.S. Federal Communications Commission on Feb. 28
voted to auction a large portion of C-band in December under a plan
that includes $9.7 billion in incentives to expedite relocating
satellite operators out of the spectrum to make way for high-speed
5G networks.
The agency’s five commissioners voted three to two in favor of the
plan, released three weeks ago, despite worries that the plan will
trigger litigation from disaffected companies or a rebuke from
Congress where lawmakers had sought to legislatively prescribe the
auction rules.
Central to the debate was whether the $9.7 billion in payments to
encourage satellite operators to fully vacate the spectrum two years
faster — in 2023 instead of 2025 — was appropriate, or legal.
Intelsat Still Burdened with Debit Even
if FCC Boosts Payout
Posted: 28 February
2020
By Todd Shields
Februrary 28, 2020,
4:00 AM EST
Satellite provider
Intelsat SA will still face a steep pile of debt even if it wins
bigger payouts for giving up spectrum in a vote Friday by
U.S. regulators that want the frequencies for fast 5G mobile
networks. The
Federal Communications Commission is scheduled to vote on Chairman
Ajit Pai’s
plan to pay satellite providers as much as
$9.7 billion for leaving the airwaves, with 50% of that, or
$4.85 billion, potentially going to Intelsat.
Luxembourg-based Intelsat in a
filing asked for 60% or more of the pot. Fellow satellite provider
SES SA, which also would give up airwaves, in a filing
said it should get as much as Intelsat, compared with 41% as
proposed by the FCC. Intelsat’s finances “may remain stressed even
with a large relocation payment” because core portions of its business
are deteriorating, Stephen Flynn, a Bloomberg Intelligence analyst, said
in a
Feb. 27 note. Earnings may decline next year, as some customers flee
and others renew contracts at lower rates, Flynn said.
Implied
Volatility Surfing for Intelsat (I) Stock Options
Posted: 27 February
2020
Investors in Intelsat
S.A. I need to pay close attention to the stock based on moves
in the options market lately. That is because the Mar 20, 2020 $5.00
Call had some of the highest implied volatility of all equity options
today.
What is
Implied Volatility?
Implied volatility shows how
much movement the market is expecting in the future. Options with high
levels of implied volatility suggest that investors in the underlying
stocks are expecting a big move in one direction or the other. It could
also mean there is an event coming up soon that may cause a big rally or
a huge sell-off. However, implied volatility is only one piece of the
puzzle when putting together an options trading strategy.
What do
the Analysts Think?
Clearly, options traders are
pricing in a big move for Intelsat shares, but what is the fundamental
picture for the company? Currently, Intelsat is a Zacks Rank #3 (Hold)
in Satellite and Communication industry that ranks in the Top 44% of our
Zacks Industry Rank. Over the last 60 days, no analysts have increased
their earnings estimates for the current quarter, while one analyst has
revised the estimate downward. The net effect has taken our Zacks
Consensus Estimate for the current quarter from a loss of $1.31 per
share to a loss of $1.10 in that period.
Click
HERE
for
further details from
Zacks Market Equity Research
Shares closed today $4.06/share
Telesat Sides
with SES Against Intelsat's Request for More C-Band Money
Posted: 27 February 2020
WASHINGTON — Telesat and SES are urging the U.S. Federal
Communications Commission to reject Intelsat’s request for a larger
share of the $9.7 billion in incentive payments the FCC plans to offer
satellite operators to hasten the clearing of C-band spectrum the United
States wants to repurpose for 5G cellular networks.
The FCC plans to
use proceeds from an upcoming C-band auction to incentivize satellite
operators to vacate the spectrum two years ahead of a 2025 deadline.
Auction proceeds would also be used to reimburse the cost of new
satellites and ground systems the operators will need to keep serving
C-band customers while yielding 300 megahertz spectrum to companies
building out U.S. 5G networks.
Under a proposal
the FCC released Feb. 7, Intelsat would be entitled to the largest share
of incentive payments. Intelsat has since asked the FCC to increase its
potential $4.85 billion share of the $9.7 billion to at least $5.8
billion, arguing that a 60-67% share is more in line with how much work
Intelsat needs to do to clear its swath of C-band by the end of 2023.
Northrup Grumman Successfully Completes
Historic First Docking of Mission Extension Vehicle with Intelsat 901
Satellite
Posted: 26 February 2020
Companies demonstrate groundbreaking satellite
life-extension service
DULLES, Va. –
Feb. 26, 2020 – Northrop Grumman Corporation (NYSE: NOC) and the
company’s wholly-owned subsidiary, SpaceLogistics LLC, have successfully
completed the first docking of the Mission Extension Vehicle-1 (MEV-1)
to the Intelsat 901 (IS-901) spacecraft in order to provide
life-extension services. This historic accomplishment marks the first
time two commercial satellites have docked in orbit and the first time
that mission extension services will be offered to a satellite in
geosynchronous orbit.
MEV-1, launched
Oct. 9, 2019, recently completed its orbit raising to an orbit
approximately 180 miles above geosynchronous orbit. IS-901 is a fully
operational communication satellite that is running low on fuel.
Intelsat (NYSE: I) removed 901 from service in December 2019,
transferring customers to other satellites in its extensive fleet, in
order to raise its orbit to the same altitude as MEV-1 in preparation
for docking. MEV-1 then completed the historic docking with IS-901 on
February 25 at 2:15 a.m. ET. The combined spacecraft stack will now
perform on-orbit checkouts before MEV-1 begins relocating the combined
vehicle to return IS-901 into service in early April.
“Our Mission
Extension Vehicle provides an innovative, satellite life extension
service,” said Tom Wilson, president, SpaceLogistics LLC. “Together,
Northrop Grumman, SpaceLogistics LLC and Intelsat have taken the first
step in pioneering in-space logistics services for both commercial and
government customers.”
WASHINGTON — SES is now arguing that it deserves as much
money as Intelsat to clear C-band satellite spectrum for 5G cellular
networks, following Intelsat’s solo effort last week to increase its
share of the FCC’s $9.7 billion fund.
Meanwhile, Eutelsat, a former partner of Intelsat, SES and Telesat in
the now fractured C-Band Alliance, is seeking around $1 billion more for
itself.
The FCC is scheduled to vote Feb. 28 on a plan that includes $9.7
billion to accelerate spectrum clearing by September 2023 instead of
2025 and that covers new satellites and other infrastructure needed to
continue services with less spectrum. The total amount for both is
around $14.9 billion, though the final tally could
be higher.
The FCC cautioned that its $3.3 billion to $5.2 billion price tag for
replacement infrastructure is just an estimate.
There's a 5G
Showdown Brewing. Intelsat Stock Could be a Casualty
Posted: 21 February
2020
Shares of Intelsat S.A. shot up 9.6% in
midday trading Thursday, paring earlier gains of as much as
19%, after the Luxembourg-based communications satellite
reported before the open a narrower-than-expected loss and
revenue that fell less than forecast. The net loss was
$115.0 million, or 81 cents a share, after a loss of $111.3
million, or 81 cents a share, in the year-ago period. The
FactSet consensus was for a net loss per share of 94 cents.
Revenue fell 4.8% to $517.0 million, above the FactSet
consensus of $500.9 million. Network services revenue fell
1% to $200.2 million, media revenue declined 9% to $210.6
million and government revenue fell 2% to $96.0 million. For
2020, the company expects revenue of $1.93 billion to $1.98
billion, compared with the FactSet consensus of $1.98
billion. The stock, which has now bounced 42% since it
closed at a 2-year low of $3.10 on Feb. 14, has still
plunged 38.3% over the past three months through Wednesday,
while the S&P 500 has gained 7.9%.
Click
HERE
for
further details from
Yahoo/MarketWatch.
Stocks closed today
$4.49/share
Intelsat (I) Q4
Loss Narrower Than Expected, Revenues Fall
Posted: 21 February 2020
Intelsat S.A. I
reported relatively modest fourth-quarter 2019 results with both the top
and bottom line exceeding the respective Zacks Consensus Estimate.
However, revenues were down year over year as media revenues declined
due to the increasing importance of digital platforms content.
Net Loss
On GAAP basis, net loss for the reported quarter was
$114.9 million or loss of 81 cents per share compared with loss of
$111.3 million or loss of 81 cents per share in the prior-year quarter.
The wider net loss was primarily due to lower revenues and higher
operating expenses. Net loss per share was, however, narrower than the
Zacks Consensus Estimate of loss of 99 cents.
In 2019, Intelsat recorded net loss of $913.6 million or
loss of $6.51 per share compared with loss of $599.6 million or loss of
$4.63 per share in 2018.
Click
HERE
for
further details from Yahoo/Zacks Equity
Research
Intelsat to FCC:
C-Band Alliance is Dead, We Deserve More Money?
Posted: 20 February
2020
WASHINGTON -- Intelsat on Feb. 19 urged the FCC to give the company at
least $1 billion more of $9.7 billion in proposed compensation for
clearning C-band spectrum for 5G networks and to treat the C-Band
Alliance Intelsat formed with rivals SES and Telesat as esentially dead.
Intelsat said it has more C-band revenue, capacity use
and satellite dishes in operation across the continental United States
than any other operator, and that it therefore deserves $5.8 billion to
$6.5 billion in accelerated clearing payments instead of the $4.85
billion offered under the U.S. Federal Communications Commission’s
proposed plan.
The company’s solo gambit, which earned a sharp rebuke
from SES and approval from investors, followed one day after hedge fund
Appaloosa of Short Hills, New Jersey, took a 7.4% stake in Intelsat for
the express purpose of compelling the company to demand more clearing
payments from the FCC.
Intelsat
Rift with SES Goes All 'Hunger Games' Before FCC Vote
Posted: 20 February 2020
(Bloomberg) --
Intelsat SA and SES SA , which had been allies in plans to give up
satellite airwaves, broke into a feud a week before the U.S. Federal
Communications Commission is scheduled to vote on a plan to compensate
the companies.
Intelsat said in
a filing with the agency that it believes it should get a greater share
of payments than the FCC has proposed. SES responded by calling it an
“egregious attempt” that was “both disappointing and legally
indefensible.”
The dispute has
“all gone a bit ‘Hunger Games,”’ Jefferies analyst Giles Thorne said in
a note to clients, as “one-time colleagues turn on each other.”
Intelsat rose as
much as 19% in New York trading after reporting fourth-quarter sales
that exceeded analyst expectations.
The satellite
companies have proposed giving up part of the airwaves they use to beam
TV and radio programs to stations, and to continue serving customers on
airwaves they retain. The swath at issue is known as the C-band, and
regulators are eager to free it to carry traffic for fast new 5G
networks.
Intsat's Stock Soars After Net Loss,
Revenue Beat Expectations
Posted: 20 February
2020
Shares of Intelsat S.A. shot up 9.6% in
midday trading Thursday, paring earlier gains of as much as
19%, after the Luxembourg-based communications satellite
reported before the open a narrower-than-expected loss and
revenue that fell less than forecast. The net loss was
$115.0 million, or 81 cents a share, after a loss of $111.3
million, or 81 cents a share, in the year-ago period. The
FactSet consensus was for a net loss per share of 94 cents.
Revenue fell 4.8% to $517.0 million, above the FactSet
consensus of $500.9 million. Network services revenue fell
1% to $200.2 million, media revenue declined 9% to $210.6
million and government revenue fell 2% to $96.0 million. For
2020, the company expects revenue of $1.93 billion to $1.98
billion, compared with the FactSet consensus of $1.98
billion. The stock, which has now bounced 42% since it
closed at a 2-year low of $3.10 on Feb. 14, has still
plunged 38.3% over the past three months through Wednesday,
while the S&P 500 has gained 7.9%.
Click
HERE
for
further details from
Yahoo/MarketWatch.
Intelsat (I) came
out with a quarterly loss of $0.81 per share versus the Zacks Consensus
Estimate of a loss of $0.99. This compares to loss of $0.91 per share a
year ago. These figures are adjusted for non-recurring items.
This quarterly
report represents an earnings surprise of 18.18%. A quarter ago, it was
expected that this communications and satellite company would post a
loss of $1 per share when it actually produced a loss of $1.05,
delivering a surprise of -5%.
Over the last
four quarters, the company has surpassed consensus EPS estimates just
once.
Intelsat, which
belongs to the Zacks Satellite and Communication industry, posted
revenues of $516.95 million for the quarter ended December 2019,
surpassing the Zacks Consensus Estimate by 3.60%. This compares to
year-ago revenues of $542.77 million. The company has topped consensus
revenue estimates three times over the last four quarters.
Click
HERE
for
further details from
Yahoo/Zacks Equity Research
Intelsat
Announces Fourth Quarter and Full-Year 2019 Results
Posted: 20 February 2020
Fourth quarter revenue of $517 million; full-year
2019 revenue of $2,061 million
Fourth quarter net loss attributable to Intelsat S.A.
of $115 million; full-year 2019 net loss attributable to Intelsat
S.A. of $914 million
Fourth quarter Adjusted EBITDA of $371 million or 72
percent of revenue; full-year 2019 Adjusted EBITDA of $1,481 million
or 72 percent of revenue
Intelsat issues 2020 Guidance
Intelsat S.A.
(NYSE: I), today announced financial results for the three months and
full-year ended December 31, 2019.
Intelsat reported
total revenue of $517.0 million and net loss attributable to Intelsat
S.A. of $115.0 million for the three months ended December 31, 2019. For
the year ended December 31, 2019, Intelsat reported total revenue of
$2,061.5 million and net loss attributable to Intelsat S.A. of $913.6
million.
Click
HERE
for
further details from Yahoo Finance/Business Wire.
Can David Tepper
Aid Intelsat (I) to Rebound from 2-Year Low?
Posted: 19
February 2020
Intelsat S.A.’s
I shares soared 25.8% yesterday as Appaloosa Management, the
hedge fund firm overseen by famed billionaire investor David
Tepper, announced that it has acquired 2.9 million shares of
the satellite and communication services provider. This is
likely to offer significant boost to the beleaguered company
that tanked 83.8% in the past year and recorded an abysmal
low of $2.61 on Feb 5, 2020.
What Triggered the Plunge?
Intelsat shares declined sharply in November
last year when investors resorted to panic selling as the
Federal Communications Commission (“FCC”) lent its support
to the Congress’ move to hold public auction for its C-band
spectrum. The stock declined 67.1% in 2019, making it the
worst performer in the Zacks Satellite and Communication
industry.
Click
HERE
for
further details from
Yahoo/Zacks Equity Research
Shares closed
today $4.01/share
Intelsat Revises
IS-29e Replacement Plan, Preps Second-Gen Epic Order
Posted: 17 February
2020
WASHINGTON -- Intelsat has abandoned plans to order a
one-for-one replacement for the Intelsat-29e satellite that failed last
year and will rely instead on leased capacity, a borrowed satellite, and
the newly ordred Intelsat-40e spacecraft to fill a overage gap over
North and South America.
Intelsat said last summer it intended to award a contract
by the end of 2019 for a direct replacement for the three-year-old
Intelsat-29e satellite. The global satellite fleet operator now says the
Intelsat-40e satellite recently ordered from Maxar Technologies will
serve as a partial replacement for IS-29e. The rest of the gap will be
covered by a borrowed Hispasat satellite and capacity leased from
competitor SES and other satellite operators.
Intelsat-29e was the first Epic-series high-throughput
satellite in Intelsat’s fleet, and carried 10 times the capacity of
earlier satellites. Its mission came to an abrupt end in April when it
suffered a catastrophic fuel leak Intelsat still believes was caused by
a micrometeoroid impact or an ill-timed electrostatic discharge
triggered by unfavorable solar weather.
Forrester
Reports: February 21 is D-Day for the FCC's C-Band Decisions
Posted: 13 February 2020
Chris Forrester at the Advanced
Television infosite is reporting that the FCC’s
order on its $9.7 billion proposal will be determined on February 28,
with a D-Day meeting of the full Commission.
Prior to that assemblage, the
participants and stakeholders have until February 21 to make their
comments. There will be an enforced ‘quiet period’ between the 21st and
28th of the month.
Meanwhile, the three main
participants will hold their results announcements (Eutelsat on February
14, Intelsat on February 18 and SES on February 25), where some fresh
newsflow might be generated. The key players are near-silent other than
to stress that hard work is going on behind the scenes.
SES, for example, repeated their
comments from a week ago, and stated, "We are overall pleased
with the draft order and thank the FCC for their work. Some elements of
the draft order require more discussions with the FCC. This includes,
for example, technical parameters, deadlines for clearing, penalties for
late clearing or timing of fund availability.”
Intelsat also seems relaxed
enough other than to say that due diligence is absolutely necessary and
that – as ever – the devil is in the detail. “Each company—including
C-band customers—has to read what is proposed and determine if the terms
stated for the transition are set up so that we can ensure we can be
successful, and as importantly, not impede the services that we continue
to provide to our customers throughout the transition,” said
Intelsat.
Earnings
Preview: Intelsat (I) Q4 Earnings Expected to Decline
Posted: 12 February
2020
Wall Street
expects a year-over-year decline in earnings on lower revenues when
Intelsat (I) reports results for the quarter ended December 2019. While
this widely-known consensus outlook is important in gauging the
company's earnings picture, a powerful factor that could impact its
near-term stock price is how the actual results compare to these
estimates.
The earnings
report might help the stock move higher if these key numbers are better
than expectations. On the other hand, if they miss, the stock may move
lower.
While the
sustainability of the immediate price change and future earnings
expectations will mostly depend on management's discussion of business
conditions on the earnings call, it's worth handicapping the probability
of a positive EPS surprise.
The Space Industry's B.S. Problem
Posted: 11
February 2020
A space industry flush with startups and easy money struggles to tamp
down all the B.S.
At a meteorology conference, a space industry consultant
asked if I'd heard the news. He claimed the National Oceanic and
Atmospheric Administration canceled plans to buy commercial weather
satellite data. Since I hadn't heard, I checked with NOAA
officials who confirmed my suspicion. It wasn't true.
Journalists have always looked for sources to trust and
clues to help separate fact from fiction, but it's never been more
daunting than in this period of rapid change for the space industry.
Startups make bold claims about their current technology, on-orbit
performance and future prospects. Industry veterans, meanwhile,
patiently explain why the claims are unrealistic or physically
impossible. Neither side has a monopoly on candor. In the
last couple of years, SpaceNews reporters have been warned of
exaggerated test results, forged documentation and a padded resume.
We've heard creative explanations for projects canceled or delayed.
An entrepreneur told a reporter the firm's launch was on
hold because the launch vehicle operator was having trouble finding
additional passengers to share the flight. The launch vehicle
operator offered a different explanation: the startup couldn't pay
for the flight.
Intelsat
Gets Downgraded Again Because $5
Billion Doesn't Fix Everything
Posted: 10 February
2020
Satellite operator
Intelsat
S.A. has been
downgraded by another Wall Street analyst, after investors learned
that a lump-sum payment linked to the U.S.’s transition to 5G won’t
measure up to their initial hopes.
Raymond James downgraded the stock (ticker: I) to
“Market Perform,” the equivalent of hold, from “Outperform,” the firm’s
second-strongest buy rating. The shares were down 8% in early Monday
trading.
Intelsat could get up to $4.9 billion in incentive
payments for meeting a three-year deadline to relocate satellites as
part of the U.S.’s transition to 5G, according to a
draft order released Friday by the Federal Communications
Commission.
But the company has nearly $15 billion of debt,
and analysts at J.P. Morgan Chase say it faces a “challenged
business.” Investors were initially
hoping for a payout of up to $24 billion for Intelsat.
Intelsat Stock
Falls as Anaylst Sees 'Little Hope' for Investors after FCC's 5G
Spectrum Proposal
Posted: 8 February 2020
J.P. Morgan turns bearish, sees ‘little to no’ value in the shares after
FCC Chairman Pai’s plan to free up C-band spectrum for 5G
Shares of
Intelsat S.A. took a tumble Friday, after J.P. Morgan analyst Philip
Cusick said Federal Communications Commission Chairman Ajit Pai’s
proposal to quickly free up spectrum for 5G networks leaves “little
hope” for equity investors.
Cusick downgraded
the Luxembourg-based satellite services company to a rare underweight
rating, after being at neutral the past three months, and at overweight
for seven months before that. He removed his price target of $9, writing
in a note to clients that “we see little to no fundamental equity value
in shares” given Pai’s proposal.
Only 15% of
companies covered by J.P. Morgan analysts are rated underweight, while
41% are rated neutral and 45% are rated overweight.
The stock I,
+0.27% slid as much as 155% intraday, before paring some losses to be
down 9.4% in active midday trading.
Intelsat Reaches Deal with the FCC on
C-Band Airwaves
Posted: 6 February
2020
(Bloomberg) -- Intelsat SA and other satellite providers
would share as much as $14.9 billion under a proposal from federal
regulators to compensate them for giving up airwaves in an auction to
wireless companies.
The U.S. Federal Communications Commission announced
Thursday a plan that would provide $9.7 billion in compensation to
Intelsat, SES SA and other companies if they hit deadlines for leaving
the airwaves quickly, and another $3.3 billion to $5.2 billion to pay
for costs of making the switch.
“It’s only fair that every single reasonable cost should
be covered,” FCC Chairman Ajit Pai said Thursday.
At stake is what portion of auction proceeds, projected
to reach tens of billions of dollars, should go to satellite providers
including Intelsat and SES, both based in Luxembourg, and Eutelsat SA.
The satellite companies have proposed giving up part of
the airwaves they use to beam TV and radio programs to stations, and to
continue serving customers on airwaves they retain. The swath at issue
is known as the C-band, and regulators are eager to free it to carry
traffic for fast new 5G networks.
Intelsat
Responds to Remarks of FCC Chairman Ajit Pai in C-Band Proceeding
Posted: 6 February
2020
Incentive clearing payments to certain satellite operators to total $9.7
billion, exclusive of clearing costs
Draft Order expected on 7 February 2020
Intelsat (NYSE:
I) today responded to remarks delivered by Federal Communications
Commission ("FCC") Chairman Ajit Pai at an industry event hosted by the
Information Technology and Innovation Foundation in Washington, D.C. The
Chairman’s commentary previewed the key elements of a highly anticipated
draft order in the C-band proceeding in which Intelsat has been an
active participant since 2017. Once issued, the draft order is expected
to detail the FCC’s approach to clearing C-band spectrum to enable rapid
and nationwide 5G network deployment in the U.S.
Intelsat CEO
Steve Spengler said, "The issuance of the draft order represents a
significant milestone in a process that we began in 2017. We look
forward to reviewing the draft order, once issued, to place Chairman
Pai’s comments in full context. We note with appreciation the hard work
of all stakeholders to get to this juncture, and the work to come
leading up to the Commission’s vote on February 28, 2020."
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