Intelsat ends debt swap efforts, likely leading to a collapse of its planned merger with OneWeb

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Intelsat has ended efforts to swap company debt, leading to a likely collapse of its planned merger with OneWeb.

The company announced early Thursday that it was unable to work out deals with bondholders to exchange current bonds with new ones that would lower the company’s overall debt load.

That debt swap was a condition of a planned investment by Japan’s SoftBank as part of a merger with OneWeb announced earlier this year.

Intelsat said that it expects OneWeb and SoftBank to terminate the deal, but added the companies will continue to honor a commercial agreement to jointly develop integrated solutions.

In early trading on European exchanges, shares in Eutelsat, Inmarsat and SES all rose on speculation they could become new takeover targets for SoftBank. [Intelsat / Reuters]


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