Attachment ex parte

ex parte

Ex PARTE PRESENTATION NOTIFICATION LETTER submitted by Inmarsat

ex parte

2004-06-21

This document pretains to SAT-MSC-20040210-00027 for Miscellaneous on a Satellite Space Stations filing.

IBFS_SATMSC2004021000027_382134

Washington, O.C. 20004-1304 Tel: (202) 637-2200 Fax: (202) 637-2201 wwW.Iw.com FIRM I AFFILIATE OFFICES Boston Brussels New York Chicago Northern Virginia Frankfurt Orange County Hamburg Paris June 3,2004 Hong Kong San Diego London San Francisco Los Angeles Silicon Valley -. Milan Singapore Marlene H. Dortch Moscow Tokyo Secretary Washmgton,&ejj& 3 Federal Communications Commission 445 12th Street, S.W. Washington, D.C. 20554 Re: Notice of Ex Parte Presentation ‘I 2 x 4 t G File No. SAT-MSC-200402 10-00027 ,ji , ,, 1 !I, Yesterday, Alan Auckenthaler, General Counsel of Inmarsat Ventures Limited (“Inmarsat”), and John Janka and Alex Hoehn-Saric of Latham & Watkins met with Neil Dellar, Dan Harrold, and David Horowitz of the Office of General Counsel and Stephen Duall, Karl Kensinger, and Cassandra Thomas of the International Bureau. The enclosed presentation, chart describing the structure of the Inmarsat transaction, and Inmarsat’s positions of record formed the basis for the discussion. In addition, Inmarsat discussed the Scheme qfArvungement recently submitted into the record, the obligations under U.K. takeover laws regarding Inmarsat’s consideration of the transaction, and the timing of various aspects of the transaction. Finally, Inmarsat explained that the Commission has the flexibility to interpret the requirements of Section 62 1( 5 ) of the ORBIT Act based both on the statutory provision allowing Inmarsat to be either a “national corporation or similar accepted commercial structure” and the discretion granted to the Commission under the “consistent with” standard in the Act. If you have any questions, please contact me. Sincerely yours, Enclosures (2) cc: Neil Dellar Stephen Duall Dan Harrold -------------

Marlene H. Dortch ' June 3,2004 Page 2 L AT H A M& W AT K I N S LLP David Horowitz Karl Kensinger Cassandra Thomas

June 2,2004 I Inmarsat Has Complied witb tbe ORBIT Act *:* U.S.Interests Are at Stake > U.S. Investment 0 Lockheed (through Comsat) owns approximately 14% of Inmarsat 0 U.S. investors account for over 40% of the capital in the Apax Partners and Pennira funds that control Inmarsat P U.S. Services 0 U.S. industry relies on Inmarsat as a competitive MSS alternative 0 Federal, state and local government users need continued access to current and next-generation Inmarsat spacecraft Current federal government users include the Department of Defense, U.S. Coast Guard, Department of Homeland Security, and law enforcement agencies The Department of Defense has indicated its interest in and intent to use Inmarsat’s next-generation BGAN service Next-generation Inmarsat spacecraft will offer a new class of mobile broadband services to consumers in underserved parts of the U.S. *3 Inmarsat’s Initial Public Offering and Simatory Ownership Dilution P Prior to the fall of 2003, Inmarsat had prepared five times for a public equity offering, incumng expenses of over $1 0 million 0 Each time, weak financial markets foiled Inmarsat’s efforts > In late 2003, Inmarsat faced: 0 a continued weak equity market with no sure prospect for improvement 0 former Signatories seeking to divest their ownership interests 0 a takeover proposal it was obligated to consider under the UK Takeover Code > The Board determined that the proposal made by Apax Partners and Permira was in the best interests of the company and its owners 0 former Signatory ownership would be diluted by more than 50% 0 positive control and majority ownership interests would be acquired by h n d s controlled by new, non-Signatory entities 0 management would obtain a vested interest in the company through its own ownership interest 0 Inmarsat would become a public company, subject to national securities regulation through the issuance of publicly traded debt securities 9 The takeover was structured as a leveraged buy out, reliant on money to be raised through the issuance of public debt securities File No. SAT-MSC-20040210-00027 Inmarsat Ventures Limited

June 2,2004 0 the takeover and resulting dilution would not have occurred but for the subsequently planned initial public offering of debt 0 "Series A" debt securities were sold and listed for trading on the Luxembourg Stock Exchange 0 after completion of a forthcoming SEC registration, the Series A securities will be exchanged for "Series B" securities, which will be freely and publicly tradeable in the U.S. *: lnmarsat Has Satisfied the Purposes of ORBIT Act > Through an initial public offering, lnmarsat has substantially diluted the aggregate ownership interests of former Signatories 0 As a result of its initial public offering, 57% of the ownership of Inmarsat . resides with non-Signatory, non-governmental entities This is over two times the level of dilution recognized as "substantial" in . the New Skies decision 70 of 85 former Signatories have fully redeemed their ownership interest in the company . 3 former Signatories hold a residual interest of only one share m . Foreign government ownership has been substantially reduced Only 12 of 85 former Signatories hold an interest similar to what they held before 0 lnmarsat has financed this dilution through an initial public offering 9 lnmarsat has listed its Series A debt securities on the Luxembourg Stock . Exchange, where they are freely and publicly tradeable The expert U.S. agency on securities matters recognizes lnmarsat's forthcoming A/B exchange as an "initial public offering" in the U.S. + The Ah3 exchange of debt securities to be registered at the SEC is an Exxon Capital transaction that the SEC deems an initial public offering After the A03 exchange, the "Series B" securities will be fi-eely and publicly tradeable in the U.S. 0 The initial public offering of debt and the buyout of the equity ownership interests of the former Signatories are part of the same transaction and cannot be examined independently > lnmarsat has securities listed for trading on a major stock exchange with transparent and effective securities regulation 0 The listing of debt securities on the Luxembourg Stock Exchange has subjected Inmarsat to the transparent and effective security regulations of both that exchange and the European Union 2 File No. SAT-MSC-20040210-00027 lnmarsat Ventures Limited

. June 2,2004 lnmarsat-smm will subject to regulation by the U.S. Securities and Exchange Commission as well *:* lnmarsat Has Complied with the Initial Public Offeriw Requirement of the ORBIT Act P The plain language of the Act provides for apublic offering of securities, which allows an offering of either debt or equity securities 0 This general language amends the Satellite Act of 1962 (the predecessor of the ORBIT Act), where Congress specifically required Comsat to issue voting stock to the American public P As an initial step to funding the buyout of Signatories, Inmarsat issued debt securities that are listed for public trading on the Luxembourg Stock Exchange P Next, lnmarsat is effectuating an Exxon Capital AA3 exchange of debt securities in a U.S. “initial public offering” as recognized by the U.S. Securities and Exchange Commission *:* Inmarsat’s Listing of Debt Securities Is “Consistent With” the ORBIT Act P Inmarsat is subject to the transparent and effective securities regulations of Luxembourg and the EU, as a result of the listing of its debt securities for public trading in Europe > lnmarsat will be subject to U.S. federal securities regulations at the conclusion of the A/l3 exchange public offering P The ORBIT Act provides the Commission with flexibility to find Inmarsat’s listing of debt “consistent with” the Act 0 Congress granted the Commission this discretion so that the purpose of the Act would not be frustrated by an overly technical application of the statute The goal of the Act is to promote a fully competitive global market for satellite communications services by fully privatizing Inmarsat The Administration and two key Senators have recognized that Inmarsat has satisfied the purpose of the ORBIT Act Exercise of this discretion is warranted here u The overarching goal of the ORBIT Act has been met u No stated purpose of the Act would be advanced by requiring a separate listing of some type of Inmarsat equity securities The level of U.S. federal securities regulation or securities regulation in Luxembourg or the EU would not be any more effective No greater dilution would occur Control over the company would not change No increase in competition in the satellite communications services market would result 3 File No. SAT-MSC-200402 10-00027 lnmarsat Ventures Limited

June 2,2004 Sources and Uses of Capital from Inmarsat Acquisition and Recapitalization Existing debt securities Acquisition of to be exchanged for former Inmarsat lnmarsat Group substantially identical share capital notes afkr closing of from all Holdings Limited SEC-registered A/B shareholders exchange off- $1,505 million I Certain intercompany transfers/allocations, subsidiaries and use of cash to cover transaction costs not depicted for clarity of presentation. debt securities beyond that needed to repay bridge loan were used to repay $95M of the shareholder funding loan, and retire 595M of subordinated File No. SAT-MSC-200402 10-00027 Inmarsat Ventures Limited


Document Created: 2004-06-21 16:36:33
Document Modified: 2004-06-21 16:36:33
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