Attachment Intelsat - Progress

Intelsat - Progress

REPORT submitted by Intelsat

Progress

2003-04-01

This document pretains to SAT-LOA-20000119-00019 for Application to Launch and Operate on a Satellite Space Stations filing.

IBFS_SATLOA2000011900019_1172990

Before the QE@E éVE S Federal Communications Commission Washington, D.C. 20554 APR — 1 2093 Federal Communications Commission Office of Secratary In the Matter of Applications of: APR 0 7 2003 Policy Branch INTELSAT LLC International Bureau For Authority to Operate, and to Further File Nos. SAT—A/O—20000119—00008/18; Construct, Launch, and Operate C—band SAT—AMD—20000119—00029/41; and Ku—band Satellites that Form a SAT—LOA—20000119—00019/28 Global Communications System in Geostationary Orbit PROGRESS REPORT In an order adopted on September 28, 2001 and released on October 5, 2001, the Federal Communications Commission (the "FCC" or the "Commission") granted a request by Intelsat LLC to extend until December 31, 2002 the October 1, 2001 deadline set forth in the Open—Market Reorganization for the Betterment of International Telecommunications Act (the "ORBIT Act") for Intelsat, Ltd. to conduct an initial public offering of its equity securities (an "IPO").‘ In its Extension Order, the Commission required Intelsat to "file reports on a six—month basis demonstrating due diligence in pursuing an IPO under the requirements of the [ORBIT] Act.‘"" The Commission further ordered that Intelsat should file these IPO progress reports "on April 1, 2002 and October 1, 2002."" Intelsat filed such reports on each of the required dates. ‘ Intelsat LLC Requestfor Extension of Time Under Section 621(5) ofthe ORBIT Act, 16 ECC Red 18185 (2001) (Memorandum Opinion and Order) ("Extension Order"). All Intelsat entities shall be referred to herein collectively as "Intelsat." Id., 16 FCC Red at 18190. " Id. at 18191. WRFMAIN 12057846.1

As Intelsat noted in its second report, in the latter portion of the third quarter of 2002, Congress passed a bill to amend the Communications Satellite Act of 1962 to extend the deadlines by which Intelsat must conduct its o. Specifically, Intelsat now must conduct its IPO by December 31, 2003, unless the Commission extends the deadline until June 30, 2004 in consideration of market conditions and relevant business factors. Although not specifically required to do so, Intelsat files this report to continue to keep the Commission apprised ofits progress toward conducting an IPO. Intelsat continues to make progress toward conducting an IPO by the December 31, 2003 deadline. In January 2003, Intelsat completed its exchange offer for debt issued by the company. Intelsat is thus now subject to the information reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act)." Intelsat believes that being subject to the information reporting requirements of the Exchange Act should facilitate Intelsat‘s return to the market when conditions improve. Intelsat is required as a foreign private issuer to file with the U.S. Securities and Exchange Commission (the "SEC") an annual report on Forr;q 20—F within six months after the end of each fiscal }?ear. Intelsat has recently filed its first such report.© The updating of Intelsat‘s disclosure for filing with the SEC should facilitate the preparation and filing of Intelsat‘s IPO registration staterfient. Unfortunately, market conditions generally, and in the fixed satellite servicés (the "FSS") sector specifically, have remained depressed. Over the past year, for example, the share prices of FSS operators that compete with Intelsat have fallen drastically. From the end of February 2002 through the end of February 2003, SES Global, PanAmSat, and * Pub. L. No. 107—233, 116 Stat. 1480 (2002). * 15 U.S.C. § 78a; 48 Stat. 881. ° Filed on Mar. 28, 2003 and available on the EDGAR database at www.sec.gov. 2 WRFMAIN 12057846.1

company, Telkom SA Ltd. of South Africa, has investors who have "seen the value of their shares hardly budge from where they stood on the first day of trading." ‘° All but one of the IPOs through mid—March closed below their IPO prices on the first day.16 As a result of these developments, Intelsat‘s financial advisors have continued to recommend that it delay moving forward with an IPO until market conditions are more favorable. Respectfully submitted, Intelsat LLC s«VA—NSA—— Bert W. Rein Patricia J. Paoletta Jennifer D. Hindin ' Wiley Rein & Fielding LLP 1776 K Street, N.W. Washington, DC 20006—2304 202.719.7000 Its Attorneys April 1, 2003 5 14. 6 T4. WRFMAIN 12057846.1

EXHIBIT 1

— NEWS & THE WEEK IN REVIEW E1X A MCLIX G by Francis McMortis Perhaps the one bright spot Ffi.;m *:200 * g }; ';:’}‘ fif‘ The problem with the IPO } was anon—traditional TFO from GV:0s!: fixem|~"".. . market, Holmes said, is this || here have been precious few detu— New Jersey banking company Z * . _ s _ PP | EGHH same for the broader mar— tantes at the initial public market Provident Financial Services 1/15 Pnlld:m fiun:m Serfises im. $§1000 $152 ysM | PBg@tsras kets—Iraq. "We leftDecember Inc. Certainly, that company is 2/12 .lafinity Property and Carsaity Corp. 1500. 16135 1645 128 with Iraq and came into Jan— ball this year. Greenwich, Conn.— mR giving investors their money‘s 2/14 Acesadited Marae Leaders Holding Co. AM aA®M 7.3 {i625 uary with Iraq. Everyone was based research fimm Renaissance Capital utters the obvious: ‘"‘The year 2003 is start— worth. On the company‘s lirst 2728 Eadwrance Speciaity Holdings Ltd, 2200 2201 2298 02t hoping that we would have a © ing off as one ol tire worst years in IPO his— day of trading Jan. 16, Provi— /A 19¥ SA M4 (Shrea m apas) 1290 1410 1184 ::meuz resolution within the lirst few | tory." And a war may still be coming dent‘s shares shot up by 53%. weeks." Three months later, A mere quartet of companies in the As ofWednesday, the stock price was still $77.2 million offering f{rom Accredited war with Iraq appears imminent, but the || United States and one from South Africa hovering near that figure. The buyetrs were . Home Lenders Holding Co. and the liming is still uncertain. "The IPO market | have ventured forth as new issues com— Provident‘s employees and current depos— $220.8 million deal from Hamilton, is absolutely held bostage to this [threat pared with 18 for the first three months of itors in this $518 million deal. Berrouda—based insurer Endurance Spe— of) war." a hardly inspiring 2002. These IPOs arerr‘t Infinity Property and Casualty clalty Hoddings Ltd. Both companies saw All this makes 2002‘s dismal IPO mar— | giving the kind of first—day returns their Corp. was up 2.81% Wednesday over its their share prices down fractionally ket—hammered by the accounting scan— | counterparts o[ the high—filying tech boom offer price from the first day of trading in Wednesday. dal at Enron Carp. and the bankruptcies | did three years ago. Of course, many of * February for its $198 million IPOQ On average, four of the deals, exclud— of several companies including Kmart ) those tech IPOs crashed and burned and From overseas, South Africa‘s state— ing Provident, were priced belowtheir ini— Corp.—look remarkably robust. are now having salt rubbed in their owned Tellkom SA Ltd. raised less than tial price ranges, Renaissance Capital Last year, investors sank money into || wounds through shareholder litigation the government originally had hoped. In— noted. Although those IPOs "were offered the $3.9 billion spinoff by Citigroup Inc.‘s | But are these newest IPOs still pretty vestors in this $486.6 million IPO have at a 20% discount on average, investors insurance unit, Travelers Property Ca— good investments? seen the value of their shares hardly budge bailed out shortdy after iakeoft," the re— sualty Corp. That deal eclipses any of the "Right now, the market‘s response to From where they stood on the first day of search Etm said. "As a result, three of the IPOs complered so far this year. ‘‘The first || the class o{ 2003 has been disappointing," —trading. {our deals closed below their IPO prices quarter of 2002 was where everyone made said Ben Holmes of Morningnotes.com, The performance of other IPOs can on the first day, and only one IPO, En— their money," Holmes said. a Boulder, Colo.—based research fitm. "It‘s only give investors hope that there are durance Specialty Holdings, mamgtd to In retrospect, "it was pretty damn good _ basicallyfat." profits over the long haul. Consider the close Nat." compared to right now." ®

EXHIBIT 2

Dow Jones Interactive® Publications Library Page 1 of 3 ‘Q-fn.fl}‘"a *, BAAAE .. THE WALL STREET JOURNAL. Article 1 of6 Deals & Deal Makers: The Pipeline / Securities Offering Calendar . 02/10/2003 The Wall Street Journal Page C4 (Copyright (c) 2003, Dow Jones & Company, Inc.) iPOs scheduled for this week, in rough1g the order expected. after a barren Januarx. in which no injtial public offerings were issued in the U.5. —— the first time that happened since 1974 —— this week may see the first new stocks of the year, markets permtrting. , © 1ISSuer (symbol)/Headquarters =— gancshares of Florida/(BOFL) Naples, Fia. . Business —— Commercial bank Price Range —— $10 . Shares Expected (in m{llions) —— 0.9 Lead Manager —— advest . Issuer (symbol)/Headquarters ——.accredited Home Lenders/(LEND) San Diego., Calif. . , ‘~ gusiness —— Nationwide mortgage—banking Price Range —— $9—511. _ Shares Expected (in millions) —— 9.65 Lead Manager —— Friedman, Billings, Ramsey Issuer (symbol)/headquarters —— Infinity Property & Casualty/(IPCC) Birmingham, ala ' . > Business —— Provides personal automoblile {nsurance Price Range —— §18—820 Shares Expected (in mi]lioqsg ~— 12.378 Lead Manager —— CSFB, Merrill Lynch Issuer (szmbo1)/neadquarters —— Industrias Innopack Sa de CV/*(Innopak) Mex1co _ Business —— Manufactures drink containers Price Range —~ $20—§22 read manager —— Deutsche Bank AG, Merrill tynch source: Dealogic wote: as of noon Friday *"This is a so—called Rule 144a offering, which is available only to certain qualified investors. No shares wil1l trade in the u.5. . smm This week‘s IPO Lockup Expirations . _here are companies whose officers and other insiders will become eligible to sell shares in their newly public companies for the first time. such sales are watched because the sellung can {mpact the stock‘s price. Feb. 12: windRose Med{cal Properties Trust (wRS) source: dealogic other Stock and Bond Offerings here are other u.5. Treasury, corporate and mumicipal offerings that enc Rumills


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Document Modified: 2017-02-01 16:46:23
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