Hertz notes drop as company halts share offering; Intelsat up after DIP loan approved

By James McCandless

San Antonio, June 17 – The distressed debt market fixed its attention on travel and manufacturing newsmakers during the Wednesday session.

Hertz Global Holdings, Inc.’s notes dropped after halting its $500 million common stock sale on reports of Securities and Exchange Commission interest.

The 6¼% senior notes due 2022 gave up 5½ points to close at 36½ bid. The 5½% senior notes due 2024 declined by 4¾ points to close at 38 bid.

During the Wednesday session, the Estero, Fla.-based car rental company announced that it would suspend its $500 million sale of additional common stock after the SEC expressed undisclosed concerns.

SEC chairman Jay Clayton said that the regulator had “comments” on the proposed offering and that it would not go forward until the comments were resolved.

Satellite operator Intelsat SA’s issues picked up steam after receiving final court approval for $1 billion in debtor-in-possession financing.

Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 rose ¼ point to close at 7 bid. The 9½% senior notes due 2023 picked up ¾ point to close at 25¼ bid.

After the close on Tuesday, the Luxembourg-based satellite operator received final court approval to obtain $1 billion in DIP financing, Prospect News reported.

The approved amount includes an initial draw of $500 million.

© 2015 Prospect News.
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