Intelsat bonds trade better in telecom space; Chesapeake active amid investor rift

By James McCandless

San Antonio, Dec. 5 – Traders in the distressed debt market saw the focus shift to names in the telecom and energy sectors.

Intelsat SA’s notes moved to better levels as the government works to decide how to handle a public auction of C-band spectrum.

Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 rose 1½ points to close at 46 bid. The 9½% senior notes due 2023 added ¼ point to close at 56¼ bid.

The two tranches combined to see about $52 million trading.

The Luxembourg-based satellite operator’s structure saw heightened attention as the U.S. government works out how to handle a public auction for C-band spectrum.

The Senate is considering a number of bills that would offer direction to the Federal Communications Commission on how to handle the auction.

One bill being considered in the Commerce Committee would require 50% of the auction proceeds going toward the Treasury and mandates the auction to start no later than Dec. 31, 2020.

In oil and gas, Chesapeake Energy Corp.’s paper varied as investors express concerns about the company’s five-series exchange offer.

The 7% senior notes due 2024 shed 3½ points to close at 46½ bid. The 8% senior notes due 2027 picked up 1½ points to close at 58¾ bid.

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