Satellite operator PanAmSat Holding Corp, filed for a $1.12 billion initial public offering on Monday, continuing the year-long trend of private equity firms taking their portfolio companies public. The No 3 US satellite operator, which was acquired in August by a private investor group headed by Kohlberg Kravis Roberts & Co, did not specify in its preliminary filing document how many shares it plans to sell or estimate a price per share. Those details are customarily disclosed in future filings.
PanAmSat's satellite network carries television programming and telephone calls. Private equity firms are drawn to satellite operators for their predictable cash flow, long-term customer contracts, and the high barriers that exist to entering the market.
KKR, Carlyle Group and Providence Equity Partners completed their $3.35 billion acquisition of PanAmSat in August. But with the IPO market rebounding from its moribund level of the past few years, private equity firms are jumping at the chance to cash in on their investments by taking companies public.
As of the beginning of last month, 38 companies backed by financial sponsors had gone public, raising $6.9 billion, according to Dealogic. That compared to 10 raising $2.7 billion at the same time last year.
KKR has a 43.5 percent stake in PanAmSat. Carlyle and Providence each separately hold 26.9 percent stakes, according to the prospectus.
Wilton, Connecticut-based PanAmSat said it intends to list its common stock on the New York Stock Exchange or Nasdaq. It did not provide a proposed stock symbol.
Morgan Stanley, Citigroup and Merrill Lynch & Co will manage the offering, according to the IPO prospectus.
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