Intelsat Jackson bonds jump on word of an exchange offer; Peabody Energy debt climbs

By Stephanie N. Rotondo

Seattle, Aug. 30 – The big news for the distressed debt market on Tuesday was word that Intelsat SA had launched a private exchange offer for its 6 5/8% notes due 2022.

However, a trader noted that the exchange was for the $142 million tranche of the notes linked to Intelsat Jackson Holdings SA.

“So it’s not like there is a lot of it,” he said.

Still, the paper jumped as much as 15 points to trade as high as 87, he said.

“It’s a nice deal for them,” he remarked, as holders who participate in the exchange by the early deadline will receive $705 of new 8% notes due 2024 plus $120 in cash.

After the early deadline – 11:59 p.m. ET on Sept. 12 – holders will receive the same amount of new notes and $100 in cash.

The trader also pointed out that “Luxco” paper – such as the 7¾% notes due 2021 – moved up a point to trade “around 30.”

The exchange announcement came just one day after the Luxembourg-based commercial satellite services provider said talks regarding a debt swap with holders of the 6¾% notes due 2018 had broken down.

Away from Intelsat, a trader said there continued to be strength in Peabody Energy Corp. bonds.

“They are screaming,” he said, seeing the 10% notes due 2022 rising to 33 versus levels around 30 on Monday.

© 2015 Prospect News.
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