Intelsat sees losses after directors depart; Peabody active; Rent-A-Center stabilizes

By Colin Hanner

Chicago, Oct. 12 – A relatively mild week for distressed debt – possibly due to the Yom Kippur holiday – stayed that way even after the Federal Reserve released the minutes from its September policy meeting.

“It seemed like the market was on a little bit of a breather today,” a trader said.

The minutes indicated that a rate increase come December was highly likely.

One trader pointed to Intelsat SA – particularly the Jackson and Luxembourg holdings – as active. The Caa2-rated Jackson 7¼% notes due 2019 were down “around 1½ to 2” points to 81 from 83, and the Ca-rated Luxembourg notes were down “2 points” to 31½, the trader said.

This comes off the news that Intelsat’s Silver Lake directors Egon Durban and Simon Patterson will resign from its board of directors at the end of the year.

After tumbling on Tuesday, Rent-A-Center Inc. seemed to stabilize and was “not nearly as active,” as one trader put it. After the 6 5/8% notes due 2020 took a hit of 10 points on Tuesday, “price points were right around the same zip code” and traded with an “86 handle” on Wednesday, and the 4¾% notes due 2020 were “pretty quiet.”

Peabody Energy Corp., which saw one of the highest gains of the day on Tuesday, continued to be “active again” but not as active as in the past few days, a market source said.

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