Intelsat to use its successful acquisition of ProtoStar I to serve Central Africa
On October 29, 2009, Intelsat was selected as the successful bidder at a bankruptcy auction for the ProtoStar I satellite with an all cash offer of $210 million. The acquisition, which is subject to receipt of certain other regulatory approvals, is expected to close in the fourth quarter of 2009.
Upon closing, ProtoStar I, built by Space Systems/Loral, will be re-named Intelsat 25 and transitioned to an Intelsat orbital location in the Atlantic Ocean region, providing incremental satellite capacity to central Africa and other regions. Launched in July 2008, the satellite is expected to have a 16-year life span.
The satellite, built by Space Systems Loral, has 22 Ku-band and 38 C-band transponders. Upon its launch in July 2008, the satellite was expected to have a 16-year life span.
“Intelsat continues to demonstrate its ability to execute transactions that enhance the value of its global network,” said Phillip Spector, Intelsat Executive Vice President Business Development and General Counsel. “A healthy, in-orbit satellite is extremely valuable to us given our high fleet utilization. The additional inventory will support future revenue growth and provide resilience. Over the past several years we have enjoyed strong demand for our services in Africa, and this capacity will allow us to support the growth requirements of our customers, including wireless operators and broadband service providers. Because of our operating scale and collection of valuable orbital locations, we will be able to integrate and operate Intelsat 25 with minimal incremental cost, and rapidly build a backlog of revenue for the new satellite.”
The transaction is subject to certain regulatory and bankruptcy court approvals. Intelsat expects to close the transaction within the next 30 days.