Intelsat mixed after exchange offer, proposed merger with OneWeb dissolves; Hertz higher

By Colin Hanner

Chicago, June 1 – Intelsat SA was the distressed debt market’s most notable issue on Thursday following a terminated exchange offer that will most likely end the proposed merger between the company, OneWeb and SoftBank.

Bonds of Intelsat’s subsidiaries moved in both directions on the day.

Hertz Corp.’s $1.25 billion five-year notes fared well in the secondary market following pricing on Wednesday, and existing issues were mixed after across-the-board gains a day prior.

Exploration and production companies were lifted by a shimmer of good news coming out of the Energy Information Administration on Thursday, with crude prices rising on lower crude output by the United States.

California Resources Corp. and Denbury Resources Inc. were both higher, among others.

Following a merger between offshore drillers Atwood Oceanics Inc. and Ensco plc on Tuesday, both remained in the mix, though movement, if any, varied for both.

Intelsat’s exchange offer deadline, which had been pushed back three separate times since mid-April, as well as amended several times, was terminated on Thursday following an extremely low turnout rate.

The exchange ended at 11:59 p.m. ET on May 31 after being extended several times amid response rates of less than 1%.

On the day, Intelsat Jackson Holdings SA’s 7¼% notes due 2020 were up “almost 1 point” to 91 7/8, a market source said.

Intelsat Luxembourg Holdings SA’s 8 1/8% notes due 2022 were down 1 point to 52.

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