Intelsat notes active in telecom sector; PG&E lower amid restructuring negotiations

By James McCandless

San Antonio, Dec. 6 – The distressed debt space finished off the week with a continued focus on names backed by recent news.

Intelsat SA’s notes were flat to higher as the company grapples with the prospect of a public auction of C-band spectrum.

Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 were active but held level at 46 bid. The 9½% senior notes due 2023 picked up 1 point to close at 57¼ bid.

The Luxembourg-based satellite operator’s structure continued to operate in distressed territory as the U.S. government works on setting terms for a potential public option for C-band spectrum within the next year.

Utilities name PG&E Corp.’s paper fell on Friday as it contends with state officials over its restructuring process.

The 6.05% bonds due 2034 shaved off ¼ point to close at 104½ bid.

On Thursday, California governor Gavin Newsom criticized the San Francisco-based electric utility’s proposed $11 billion settlement with insurers, saying that the company should be focused on investing in better technologies and equipment upgrades.

Tensions between the state and the utility are high as more push for higher levels of regulatory oversight, including the potential for state-appointed board members.

In a separate matter, the company is nearing a $13.5 billion payout for wildfire victims.

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