Intelsat beats expectations, firms; Bombardier wanes post-earnings; Murray, Foresight weaken

By Stephanie N. Rotondo

Seattle, Oct. 29 – Earnings news continued to be the main driver of distressed debt on Thursday.

Intelsat SA was one of the day’s gainers after the company came out with quarterly results that beat expectations. Given the decent performance, the company also affirmed its 2015 guidance.

A trader said Intelsat bonds “initially were better, then they kind of reversed,” though the debt did finish the day “up marginally.”

The trader pegged the 7¾% notes due 2021 in a 63 to 64 range, down from the intraday high in a 66 to 66½ context.

Another market source saw the 6 5/8% notes due 2022 at 80½ bid, up 1½ points.

For the quarter, the Luxembourg-based satellite services provider reported net income of $78 million, or 66 cents per share, on revenue of $580.8 million.

Revenue was down about 4.5% year over year.

However, not all earnings news was good.

Bombardier Inc., for instance, gave back some of the previous day’s gains after the Quebec-based aerospace company reported its numbers. Even confirmation that the Quebec government was investing $1 billion into the company’s CSeries program failed to give the bonds a boost.

Murray Energy Corp. and Foresight Energy LP were meantime among the day’s biggest losers following the release of Foresight’s latest financials. Foresight – which Murray took a controlling interest in back in April – reported a narrower profit for the quarter.

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