Intelsat dips as revenue legislation proposed; PG&E notes better after stock upgrade

By James McCandless

San Antonio, Jan. 28 – The distressed debt session put negative focus on shifting ground in the telecom space in an otherwise positive day.

Intelsat SA’s notes dipped after news broke of a U.S. Senate proposal to limit satellite companies’ revenues in a potential C-band spectrum auction.

Intelsat Jackson Holdings SA’s 9¾% senior notes due 2025 lost 1½ points to close at 89 bid. Intelsat (Luxembourg) SA’s 8 1/8% senior due 2023 dived 4¾ points to close at 51½ bid.

The two tranches combined to see about $61 million on the tape at the end of the session.

On Tuesday, the Luxembourg-based satellite operator’s structure came under pressure after news broke that a bipartisan group of U.S. Senators have proposed legislation that would limit the potential revenue gained from a C-band spectrum auction.

As part of the C-Band Alliance, satellite names have estimated that such an auction could generate as much as $77 billion.

Utilities name PG&E Corp.’s paper ended the session in a better position after receiving an analyst upgrade.

The 6.05% bonds due 2034 were lifted 1½ points to close at 115½ bid.

Almost a week after the San Francisco-based bankrupt electric utility smoothed out a deal with creditors to support its restructuring deal, the company received an analyst upgrade on its common stock.

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