Intelsat notes lower after C-band news; Navios issues rise as exchange offer extended

By James McCandless

San Antonio, March 5 – The Tuesday session in the distressed space saw more focus on telecom and energy names.

Intelsat SA’s notes moved lower as the government’s mood on C-band soured.

Sector peer Digicel Group Ltd.’s issues were gaining as the company planned a senior secured note offering.

In shipping, Navios Maritime Holdings Inc.’s paper was on the rise as the company again extended an exchange offer for two series of preferred shares.

Mixed oil futures led to similarly mixed movement for California Resources Corp.’s notes while Sanchez Energy Corp. and Weatherford International plc’s issues declined.

Amid a clash with a large investor, retailer L Brands, Inc.’s paper improved.

Elsewhere in retail, Revlon, Inc.’s notes saw a drop as Neiman Marcus Group, Inc.’s paper moved higher.

Intelsat lower

Intelsat’s notes were moving lower on Tuesday, traders said.

Intelsat (Luxembourg) SA’s 8 1/8% notes due 2023 dropped 5¾ points to close at 77 bid. Intelsat Jackson Holdings SA’s 5½% notes due 2023 lost ¾ point to close at 90 bid.

On Tuesday, news broke that U.S. lawmakers have threatened to kill a proposal that would allow the Luxembourg-based satellite operator and others to sell access to the C-band network to mobile phone network operators.

The C-Band Alliance, a Washington-based C-band advocacy group announced that head of advocacy Preston Padden would be leaving his post.

“I think so many distressed guys are all in on C-band and Intelsat that any negative news will just send it straight down,” a trader said.

In July 2018, the Federal Communications Commission voted to find ways to adapt the C-band spectrum to terrestrial wireless uses.

Digicel gains

In other telecom activity, Digicel’s issues were gaining, market sources said.

The 6¾% notes due 2023 added 1½ points to close at 72¾ bid.

The Kingston, Jamaica-based mobile phone network provider plans to price $550 million of five-year first-lien senior secured notes on Thursday, Prospect News reported.

The notes are callable after two years at par plus 50% of the coupon.

Its existing structure is currently on an upward trend after hitting a floor following a lackluster earnings report issued last week.

Navios up

Meanwhile, in the energy space, Navios’ paper was on the rise, traders said.

The 7 3/8% paper due 2022 gained 3 points to close at 48 bid.

On Monday, the Monaco-based shipping name raised the consideration and extended the exchange offer deadline for its 8.75% series G and 8.625% series H cumulative redeemable perpetual preferred stock, Prospect News reported.

“This one’s hard to pin down,” a trader said. “It will pop up every once in a while and trade like crazy but not for any clear reason. That exchange is news for them but that kind of thing doesn’t drive that much for the bonds.”

Oil mixed

A mixed day for oil futures led to similar movements in popular distressed oil names, market sources said.

Los Angeles-based independent oil and gas producer California Resources’ notes ended the trading day mixed.

The 6% notes due 2024 shed 2 points to close at 68½ bid. The 8% notes due 2022 added ¾ point to close at 78¾ bid.

Houston-based sector peer Sanchez Energy’s issues were declining.

The 6 1/8% notes due 2023 lost 1¼ points to close at 12 bid.

“This one’s circling the drain,” a trader said. “I’d watch for them to file for bankruptcy soon.”

Baar, Switzerland-based oilfield services provider Weatherford’s paper was also on a negative trend.

The 9 7/8% notes due 2024 shaved off ½ point to close at 72¼ bid.

On Tuesday, West Texas Intermediate crude oil futures for April delivery saw a 3 cent trim, closing at $56.56 per barrel.

North Sea Brent crude futures for May delivery ended the session at $65.86 per barrel on a 19 cent boost.

L Brands improves, Revlon drops

In the retail sector, L Brands’ notes were improving, traders said.

The 6¾% notes due 2036 gained ¾ points to close at 85¼ bid. The 5¼% notes due 2028 picked up ½ point to close at 87¼ bid.

The Columbus, Ohio-based retailer was fending off suggestions from activist investor Barington Capital that it was not focusing on reining in costs and that it should separate its Victoria’s Secret and Bed Bath & Body segments, either spinning them off or taking them public.

In response to the push, the company said that it has already refocused on enhanced performance and growth acceleration.

Elsewhere in the sector, New York City-based cosmetics producer Revlon’s issues dropped.

The 5¾% notes due 2021 lost 4¼ points to close at 83 bid. The 6¼% notes due 2024 fell 3¾ points to close at 55 bid.

Recent Nielsen data showed that the company’s 15% sales decline over the last month have outpaced declines in other brands.

Dallas-based luxury retailer Neiman Marcus’ paper moved upward.

The 8% paper due 2021 added ¼ point to close at 54¼ bid.

© 2015 Prospect News.
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