Intelsat, Ensco generally undisturbed by earnings releases; iHeart down as exchange offer pushed back

By Colin Hanner

Chicago, April 27 – Not even quarterly earnings on Thursday could shake up the trend of lackluster activity in the distressed market as of late, market sources said.

Intelsat SA and its subsidiaries did not veer too far from where they started the day after announcing earnings in the morning.

“[Intelsat Jackson] paper was nearly unchanged, [Intelsat Luxembourg] paper was a bit lower, but not a lot of trading” overall on the session, a trader said.

Offshore drilling contractor Ensco plc was also in the earnings pool and drifted lower on the day.

Pet retailer Petsmart, Inc. bonds were “fairly active” and were down a round number on the session, a trader said.

Media and entertainment company iHeartCommunications, Inc. announced it pushed back the exchange offer deadline for five series of priority guarantee notes and senior notes for the third time due to low turnout.

“[iHeartCommunications] is slowly drifting lower, not that there’s a lot of trading,” a market source said.

Health care and pharmaceuticals remained in the mix, with Valeant Pharmaceuticals International Inc. and Community Health Systems, Inc. mixed.

Several idiosyncratic names traded in both directions, though not more than a point in either direction.

Intelsat’s earnings do little

Satellite communications company subsidiary Intelsat Jackson Holdings SA’s 7% notes due 2021 were unchanged at 91½.

Intelsat Connect Finance SA’s 12½% notes due 2022 were down ¼ point to 87¾.

Among the most notable figures from the first quarter release, Intelsat reported net revenue of $538.5 million compared to $552.6 million during the same period last year. EBITDA was $398 million in the first quarter compared to the $407.5 million during the same period last year.

In February, the company announced a merger with OneWeb Satellites LLC.

Ensco down

London-based oil and gas services company Ensco plc was down fractionally across a pair of issues on the session after releasing first quarter figures.

Its 5.2% notes due 2025 were down ½ point to 85, while its 4½% notes due 2024 were down ¼ point to 83.

Revenues were $471 million in the first quarter of 2017, a loss of $0.09 per share, compared to $814 million a year ago, the company said in a news release, adding the disparity was due to sales of a previously operating rig.

Petsmart leaking

After its acquisition of Chewy Inc. last week, Petsmart continued to fall on Thursday.

Its 7 1/8% notes due 2023 were down 1 point to a 90-zip code, a market source said.

iHeart down, but inactive

Following last week’s extension of its private exchange offer of term loans, iHeartCommunications announced it will extend the deadline for five series of priority guarantee notes to 5 p.m. ET on May 12.

On the day, iHeartCommunications’ 14% notes due 2021 were down ¼ point to 29¼.

Previously, the private exchange offer was extended to April 28 from April 21 and before that, April 14.

As of 5 p.m. ET on April 26, investors had tendered $30.9 million, or 0.4%, of the notes for exchange, up from $3.1 million on April 12 and none on April 4.

Health care and pharma

Valeant Pharmaceuticals stayed active, relatively speaking, on Thursday, though it was mixed.

Its 5 3/8% notes due 2020 were up ½ point to 85 7/8, while its 6 1/8% notes due 2025 were down ¼ point to 74½.

Seeing only one trade, Concordia International Corp.’s 9% notes due 2022 were down 3/8 point to 69¾, a market source said.

And Franklin, Tenn.-based Community Health’s 6 7/8% notes due 2022 were down ½ point to 83.

Distressed roundoff

Global shipper GulfMark Offshore Holdings Inc.’s 6 3/8% notes due 2022 were unchanged at 53½.

Houston-based GenOn Energy Inc.’s 9 7/8% notes due 2020 were up 5/8 point to 63 5/8.

And Frontier Communications Corp.’s 7 5/8% notes due 2024 were down 1/8 point to 87.

Susanna Moon contributed to this review

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