PanAmSat
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Founded in 1984 by Rene Anselmo, PanAmSat is a satellite service provider headquartered in Wilton, CT. It operates a fleet of communications satellites used by the entertainment industry, news agencies, internet service providers and telecommunication companies.
In 1996, PanAmSat and Hughes Electronics merged their operations together under General Motors. The satellite operations would continue to be under PanAmSat with Hughes being the majority shareholder. In May 1997, Hughes Communication Galaxy was merged into PanAmSat, adding 9 more satellites to its fleet. In 2003, News Corporation purchased Hughes Electronics and on April 24, 2004 sold PanAmSat to a consortium of private equity firms in an LBO including KKR, Carlyle Group and Providence Equity Partners for $4.3 billion.
2004 Leveraged Buyout
KKR led the 2004 leveraged buyout by purchasing a 44% stake in the company. Carlyle and Providence each invested 27% with management representing the remainder of the equity. The consortium invested only $550 million in equity, financing the remainder with a mix of bank loans and bonds. The transaction closed in August 2004. One month after the buyout, the Company issued an additional $250 million in discount notes which were used to pay the consortium a dividend. Three months later, PanAmSat filed a registration statement with the SEC to go public.