Intelsat lower on C-band group fracture; Navios Maritime notes drop after division sale

By James McCandless

San Antonio, Sept. 3 – The distressed debt market was in line with other markets, spending the day on a negative trend to open a short week.

Intelsat SA’s notes moved lower after a member of a consortium negotiating with the U.S. government over the use of C-band airwaves left the group.

Sector peer Frontier Communications Corp.’s issues saw varying movements.

In shipping, Navios Maritime Holdings Inc.’s paper declined after the company announced the sale of its ship management division.

Pharma name Mallinckrodt plc’s notes extended a negative run spurred by its drawing down of the remaining capital in its revolving credit facility.

Generics name Teva Pharmaceutical Industries Ltd.’s issues were also trailing.

As oil futures buckle under global trade pressure, Whiting Petroleum Corp.’s, California Resources Corp.’s and Superior Energy Services, Inc.’s notes also declined.

Utilities name PG&E Corp.’s notes finished the day worse off.

Intelsat lower

Intelsat’s notes spent Tuesday moving lower, traders said.

Intelsat Jackson Holdings SA’s 5½% senior notes due 2023 dropped 1 point to close at 90½ bid. Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 lost 1¼ points to close at 77 bid.

On Tuesday, news broke that a peer of the Luxembourg-based satellite operator has left a C-Band Alliance, a consortium of satellite operators pushing for favorable terms on C-band usage in the United States.

Paris-based Eutelsat departed the group, though vowed to remain active in discussions around C-band.

In July, Eutelsat’s chief executive officer said that the group was not in agreement on a variety of items, including the distribution of potential proceeds.

“This has been dragging on for months,” a trader said. “With this, it doesn’t look like it’s getting resolved anytime soon.”

Intelsat and other satellite names have been waiting for the government to decide where it stands on the use of the C-band spectrum and what happens to the profits generated.

Norwalk, Conn.-based wireline communications name Frontier’s issues varied.

The 10½% senior notes due 2021 fell ½ point to close at 50½ bid. The 11% senior notes due 2025 added ½ point to close at 50½ bid.

Navios declines

Meanwhile, in shipping, Navios’ paper saw a decline, market sources said.

The 11¼% senior secured paper due 2022 shaved off ½ point to close at 74 bid. The 7 3/8% paper due 2022 moved down ½ point to close at 66 bid.

After the close on Friday, the Monaco-based shipping company announced that it had sold its ship management division for $20 million to N Shipmanagement Acquisition Corp.

As part of the deal, the company entered into a five-year service agreement with NSAC for technical and commercial management services.

“Shipping names have just been shredded by everything that’s happened in trade,” a trader said.

Mallinckrodt, Teva trailing

In the pharma space, Mallinckrodt’s notes extended a negative run, traders said.

The 4¾% senior notes due 2023 slid 2¾ points to close at 32¾ bid.

The Staines-upon-Thames, England-based drug producer’s structure continued to push lower after the company announced that it drew down on the remaining $95 million in its revolving credit facility last Wednesday.

In addition, the sector is under continual pressure as lawsuits relating to the opioid epidemic persist as companies begin to make settlements.

Last week, Johnson & Johnson was ordered to pay $572 million to Oklahoma, though an appeal is expected.

Purdue Pharmaceuticals is reportedly considering a blanket $12 billion settlement to settle the thousands of outstanding cases against it.

Petach Tikva, Israel-based generics name Teva’s issues trailed.

The 2.2% senior notes due 2021 dipped ¼ point to close at 93¾ bid. The 2.8% senior notes due 2023 lost 1 point to close at 84 bid.

Oil buckles

As oil futures buckled, distressed energy tranches moved similarly, market sources said.

Denver-based independent oil and gas producer Whiting Petroleum’s paper was lower.

The 6¼% senior notes due 2023 fell 1½ points to close at 78 bid. The 6 5/8% senior paper due 2026 shed 4¾ points to close at 69½ bid.

Los Angeles-based oil and gas producer California Resources’ notes were negative.

The 6% senior notes due 2024 crashed 10 points to close at 43 bid. The 8% notes due 2022 declined by 2¾ points to close at 54 bid.

Houston-based oilfield services provider Superior Energy’s issues followed the sector’s trend.

The 7 1/8% senior notes due 2021 lost 3 points to close at 67½ bid. The 7¾% senior notes due 2024 dipped 3¼ points to close at 60 bid.

West Texas Intermediate crude oil futures for October delivery moved down $1.16 to settle Tuesday at $53.94 per barrel.

North Sea Brent crude oil futures for November delivery finished at $58.26 per barrel after a 99 cent loss.

PG&E off

Utilities name PG&E’s paper ended the session worse off, traders said.

The 6.05% notes due 2034 lost 1½ points to close at 108¼ bid.

The San Francisco-based bankrupt electric utility is expected to file its restructuring plan in bankruptcy court this month in a move anticipated since entering Chapter 11 in January.

The utility recently won the sole right to submit a plan after a judge shot down two creditor groups’ efforts to propose their own.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.