Intelsat notes lower amid revenue worries; L Brands improves on talk of asset sale

By James McCandless

San Antonio, Jan. 29 – By the end of the Wednesday distressed debt session, names in the telecom and retail sectors were the key drivers.

Intelsat SA’s notes moved lower amid increasing worries of a reduced revenue stream from a C-band spectrum auction.

Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 crashed 10¼ points to close at 41¼ bid. The 9½% senior notes due 2023 lost 10¼ points to close at 53¼ bid.

The Luxembourg-based satellite operator’s structure saw more weakness on Wednesday after more details emerged on a U.S. Senate proposal that would limit the amount of revenues that the company and its peers would receive from a c-band spectrum auction.

The Spectrum Management and Reallocation for Taxpayers Act would limit the proceeds going to operators at $1 billion.

A $6 billion fund would be allocated to paying for relocation off of the spectrum while more funds would be pegged for deficit reduction and the improvement of rural broadband networks.

Meanwhile, in retail, L Brands, Inc.’s paper shot up after news broke that its chief executive officer is considering stepping down and selling off Victoria’s Secret.

The 6¾% senior notes due 2036 improved by 3¾ points to close at 96½ bid. The 5¼% senior paper due 2028 picked up 1½ points to close at 99 bid.

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