Intelsat big moves pick back up; Community Health, Valeant down on health care bill

By Colin Hanner

Chicago, March 7 – As traders awaited the slew of new issues in the high-yield market, activity in the distressed realm took a softer tone on Tuesday, traders said, though health care legislation and company-specific developments shifted movement for a few distressed companies.

“[There were] tons of new issues,” a trader said, adding that there was muted activity in the distressed arena as traders waited for deals to price.

“The most active names volume-wise were new issues,” another trader said.

By and large the most active issues of the day were those of Intelsat SA and its subsidiaries, some of which were up several points on the day.

Franklin, Tenn.-based hospital group Community Health Systems, Inc. announced a public offering of $1.75 billion of senior secured notes due 2023, the proceeds of which will be sued to repay certain term loans, as well as the company’s 5 1/8% senior secured notes due 2018.

The hospital group was also feeling the effects of recently proposed heath care legislation, the American Care Act, especially on its equity front.

On a similar front, Valent Pharmaceuticals International, Inc. was down several points though, generally, the health care legislation was less direct at pharmaceutical makers than was a tweet by President Trump early Tuesday morning directed at drug makers.

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