ITEM 8.01. OTHER EVENTS.
Receipt of Acceleration Payments
As previously disclosed, on March 3, 2020, the U.S. Federal Communications
Commission ("FCC") issued its final order in the C-band proceeding (the "FCC
Final Order"), which, among other things, provides for monetary incentives for
certain specified fixed satellite services providers, including Intelsat License
LLC ("Intelsat License") a subsidiary of Intelsat S.A. (the "Company") to clear
a portion of the C-band spectrum on an accelerated basis (the "Acceleration
Payments").
Under the FCC Final Order, Intelsat License is eligible to receive Acceleration
Payments of approximately $1.2 billion and $3.7 billion based on the milestone
clearing certification dates of December 5, 2021 and December 5, 2023, with the
respective payments expected to be received in the first half of each successive
year, respectively, subject to the satisfaction of certain deadlines and other
conditions. In addition, under the FCC Final Order, we are also entitled to
receive reimbursement payments for certain C-band spectrum clearing expenses
incurred, subject to the satisfaction of certain conditions set forth in the FCC
Final Order.
On October 4, 2021, Intelsat License filed its Phase I Certification of
Accelerated Relocation (as amended on October 15, 2021, the "Phase I
Certification"), indicating completion of required clearing activities to
satisfy the December 5, 2021 deadline (the "Deadline") and requesting FCC
validation to receive the approximately $1.2 billion Acceleration Payment. On
November 12, 2021, the Wireless Telecommunications Bureau of the FCC entered an
order validating the Phase I Certification.
On December 29, 2021 and January 4, 2022, we received Acceleration Payments of
approximately $479,136,800 and $718,705,200, respectively, from the Relocation
Payment Clearinghouse (as defined in the FCC Final Order). In aggregate, we
received approximately $1,197,842,000 from the Relocation Payment Clearinghouse
for meeting the Deadline. The Company intends to use the payments for general
corporate purposes, which may include, among other things, capital expenditures
and repayment of indebtedness.
Forward-Looking Statements
This Current Report on Form 8-K contains "forward-looking statements" related to
future events. Forward-looking statements contain words such as "expect,"
"anticipate," "could," "should," "intend," "plan," "believe," "seek," "see,"
"may," "will," "would," or "target." Forward-looking statements are based on
management's current expectations, beliefs, assumptions and estimates and may
include, for example, statements regarding future Acceleration Payments pursuant
to the FCC Final Order. These statements are subject to significant risks,
uncertainties, and assumptions that are difficult to predict and could cause
actual results to differ materially and adversely from those expressed or
implied in the forward-looking statements, including risks and uncertainties
regarding the Company's ability to comply with the conditions and restrictions
imposed by the terms and conditions of its financing arrangements, including any
debtor-in-possession financing arrangements in connection with the Company and
certain of its subsidiaries having commenced voluntary cases (the "Chapter 11
Cases") under chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Eastern District of Virginia, and the risk that
these conditions may not be satisfied for various reasons, including for reasons
outside of the Company's control due to the Chapter 11 Cases or the Company's
compliance with the FCC Final Order and any other FCC orders.
Any forward-looking statements are also subject to the risk factors and
cautionary language described from time to time in the reports the Company files
with the SEC, including those in the Company's most recent Annual Report on Form
10-K and any updates thereto in the Company's Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. These risks and uncertainties may cause actual
future results to be materially different than those expressed in such
forward-looking statements. The Company has no obligation to update or revise
these forward-looking statements and does not undertake to do so.
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