Intelsat's bonds rallied last week after the junk-rated satellite company agreed to merge with SoftBank-backed OneWeb in a move that could substantially cut its debt load. As part of the deal, the Japanese conglomerate will inject US$1.7bn of fresh equity into the combined company, giving it a 39.9% voting stake. But the merger with US satellite start-up OneWeb is contingent on a majority of Intelsat bondholders accepting an exchange offer that will crystallise losses on their holdings.
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