Intelsat notes active after bankruptcy filing; Endo flat to slightly up amid exchange

By James McCandless

San Antonio, May 14 – In Thursday’s distressed debt market, the focus shifted to newsmakers in telecom and pharmaceuticals.

Intelsat SA’s notes varied after the company filed for bankruptcy to shore up liquidity ahead of a C-band spectrum auction.

The 9½% senior notes due 2024 rose 3¾ points to close at 21 bid. Intelsat Jackson Holdings SA’s 8¼% senior notes due 2024 fell 3¾ points to close at 61¼ bid.

The two tranches combined to see about $43 million change hands by the end of the afternoon.

Early Thursday, the Luxembourg-based satellite operator and some of its subsidiaries filed Chapter 11 bankruptcy to complete a financial restructuring and enhance liquidity that will likely result in a substantial reduction of its legacy debt burden, Prospect News reported.

One of the main reasons for the filing given was that the company wanted to participate in the accelerated clearing of C-band spectrum as ordered by the Federal Communications Commission, which would require more than $1 billion in related spending.

In the pharma space, Endo International plc’s paper diverged as three of its subsidiaries start an exchange offer.

The 6% senior notes due 2025 held level at 73¾ bid. The 6% senior paper due 2023 tacked on ¼ point to close at 77½ bid.

© 2015 Prospect News.
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