Intelsat, Ltd., a provider of fixed satellite services, was recently named as the successful bidder in the October 29 public auction for the ProtoStar 1 satellite with a $210 million, all-cash offer.

 

Reportedly, the satellite will be re-named Intelsat (News - Alert) 25 upon conclusion of the transaction, and will join Intelsat’s global fleet; serving with the company’s other assets in the Atlantic Ocean region.

 

“Intelsat continues to demonstrate its ability to execute transactions that enhance the value of its global network,” said Phillip Spector, executive vice president of business development and general counsel for Intelsat. “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.”

 

Spector also noted the company’s operating scale and collection of valuable orbital locations, with which it will be able to integrate and operate Intelsat 25 with minimal incremental cost, and rapidly build a backlog of revenue for the new satellite.

 

Intelsat expects to close the transaction within the next 30 days, subject to certain regulatory and bankruptcy court approvals.

 

ProtoStar Ltd, a Bermuda company, has been focusing on providing high power geostationary satellite services optimized for direct-to-home satellite television and broadband internet access across the Asia-Pacific region. Back in July, ProtoStar worked with its principal lenders to structure a sale process that the Company believed was the best way to maximize the value of its assets. Eventually, the company marketed its satellites in an orderly sale process run by UBS Securities LLC.

 

ProtoStar 1 was built by Space Systems Loral, and is said to have 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.