Intelsat notes eyed as market weighs FCC deal; L Brands better amid asset sale talk

By James McCandless

San Antonio, Feb. 10 – The distressed debt space opened Monday with much of the focus on telecom and retail newsmakers.

Intelsat SA’s notes varied in direction as the market scrutinizes the company’s C-band spectrum auction deal with the Federal Communications Commission.

Intelsat Jackson Holdings SA’s 8½% senior notes due 2024 held level at 92½ bid. The 9¾% senior notes due 2025 shaved off ¼ point to close at 94¼ bid.

The Luxembourg-based satellite operator’s structure was in high demand as market analysts took a negative view on its C-band spectrum auction revenue agreement with the FCC.

Analysts estimated that the company would reap just under $5 billion in revenue from the auction, which would only provide a dent to its $14 billion debt load.

In the retail space, L Brands, Inc.’s paper performed better amid talk of a potential sale of its Victoria’s Secret segment.

The 6¾% senior notes due 2036 rose 1¼ points to close at 101¾ bid. The 5¼% senior notes due 2028 inched up ¼ point to close at 100¾ bid.

According to reports on Sunday, the Columbus, Ohio-based retail name is approaching a deal to sell its Victoria’s Secret segment to private equity firm Sycamore Partners.

Analysts project that a sale of the lingerie brand could net as much as $3.4 billion.

© 2015 Prospect News.
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