California Resources weaker in tightening regulatory atmosphere; Intelsat notes active

By James McCandless

San Antonio, Nov. 22 – The distressed debt space finished the week with more attention paid to newsmakers in the energy and telecom sectors.

California Resources Corp.’s notes lost ground after a week of tightening regulatory conditions on energy in the state.

The 6% senior notes due 2024 shed 2½ points to close at 17½ bid. The 8% senior secured notes due 2022 dropped 5½ points to close at 23½ bid.

This week, the Los Angeles-based independent oil and gas producer’s structure was pushed further into distressed territory after California governor Gavin Newsom announced that the state would halt new approvals for fracking and similar operations.

Following a leak at a Chevron plant, Newsom said that no new approvals would be given until state regulators completed a safety investigation.

The company said that steamflooding, a practice it employs, is exempt from the ban.

Meanwhile, satellite operator Intelsat SA’s issues varied in direction as the government opposed its plan for a private C-band auction.

Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 held level at 50 bid. The 9½% senior notes due 2023 weakened 1¾ points to close at 63¼ bid.

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