Intelsat bonds jump on auction revenue agreement; CBL eyed amid delisting notice

By James McCandless

San Antonio, Feb. 6 – The distressed debt space spent the Thursday session largely focused on shifting ground in the telecom space.

Intelsat SA’s notes jumped after the Federal Communications Commission reached an agreement with satellite names on C-band spectrum auction revenue.

Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 gained 8 points to close at 48½ bid. Intelsat Jackson Holdings SA’s 5½% senior notes due 2023 improved by 8¼ points to close at 90¼ bid.

On Thursday, news broke that the Luxembourg-based satellite operator and others like it has reached an agreement with the FCC on how much revenue would be paid out from a C-band spectrum auction.

After regulators and lawmakers initially floated $5 billion to $7 billion, the FCC said it would pay satellite names as much as $14.9 billion.

A collective $9.7 billion is contingent upon the companies making a timely exit from designated airwaves, while $3.3 billion to $5.2 billion would pay for relocation costs.

Retail-focused REIT CBL & Associates Properties, Inc.’s paper varied amid a delisting notice for its common stock.

The 5¼% senior notes due 2023 held level at 59½ bid. The 4.6% senior notes due 2024 dropped 1½ points to close at 51 bid.

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