Intelsat notes higher as revenue plan detailed; Uniti active amid refinancing talks

By James McCandless

San Antonio, Feb. 7 – The distressed debt market remained fixed on developments in the telecom sector on Friday.

Intelsat SA’s notes continued to push higher as details about a Federal Communications Commission C-band spectrum auction emerged.

Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 gained 4½ points to close at 53 bid. The 9½% senior notes due 2023 shot up 6¼ points to close at 73¼ bid.

On Thursday, the 8 1/8% notes gained 8 points.

The Luxembourg-based satellite operator’s structure remained active as details emerged on the FCC’s plan for a C-band spectrum auction.

According to the plan, the company could receive as much as $4.85 billion for leaving the airwaves in question.

After months of uncertainty, FCC chairman Ajit Pai outlined the parameters of the auction in a speech on Thursday, committing to pay satellite names a collective $14.9 billion out of the generated revenues.

Despite the higher-than-expected payout, analysts expect the company to remain highly levered going forward.

Meanwhile, REIT Uniti Group Inc.’s paper varied in direction amid talks of refinancing and a senior secured note pricing.

The 8¼% senior notes due 2023 shaved off ½ point to close at 87 bid. The 7 1/8% senior paper due 2024 closed level at 85¼ bid.

© 2015 Prospect News.
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