A proposed IPO worth US $500 million would test the resolve of investors for financial leverage in Intelsat Global Holdings SA. The satellite operator is taking advantage of a stock market rebound that is now in at a crest of a wave of new offers.
The Luxembourg based satellite services provider is owned by private equity firms BC Partners and Silver Lake Partners. The company currently carries a debt load of US $15.9 billion and growing, providing a leverage multiple at a rate of 7.8.
The leverage multiple compares to an average debt to EBITDA rate between four and five times for other recently offered IPOs such as Norwegian Cruise Line Holdings Ltd and others.
The company's level of debt is greater now compared to its 2008 buyout worth US $16.6 billion. The takeover ranked as amongst the largest PE owned company bids accepted from another private equity firm. This was confirmed by Thomson Reuters data, as the debt of Intelstat then was just at about US$15.3 billion.
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