Intelsat dives after comments by FCC chairman; PG&E notes down as financing sought

By James McCandless

San Antonio, Nov. 18 – The distressed debt market opened a new week with shifting tides in the telecom and utilities spaces.

Intelsat SA’s notes dived after the chairman of the Federal Communications Commission endorsed a public auction plan for C-band spectrum.

Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 dropped 9 points to close at 61¾ bid. The 9½% senior notes due 2023 fell 9 points to close at 72½ bid.

Early Monday, FCC commissioner Ajit Pai announced that the agency plans to proceed with a public auction for C-band spectrum, or 5G, early next year.

The move would be contrary to the outcome desired by the Luxembourg-based satellite operator.

Meanwhile, in utilities, PG&E Corp.’s paper traded down as it seeks to fill a financing gap and warns of a new round of power cuts.

The 6.05% senior paper due 2034 fell 1 point to close at 101½ bid.

The San Francisco-based bankrupt electric utility is reportedly in the midst of renegotiating amounts that investors would commit to its restructuring plan since raising the amount it would pay out in settlements to wildfire victims.

In a filing, the company disclosed that it had $7.4 billion in commitments with a $4.6 billion gap to fill by Dec. 6.

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