Intelsat softens as Guggenheim engaged; XO rises on asset sale; GCA Services tweaks deal

By Sara Rosenberg

New York, Feb. 22 – Intelsat SA’s term loan B was noticeably weaker in trading on Monday as the company revealed that it has retained Guggenheim Securities LLC to help with its balance sheet, and XO Communications’ term loan was stronger with news of the sale of its fiber-optic network business.

Intelsat’s term loan B was quoted at 90 bid, 92 offered, down from 94˝ bid, 95˝ offered, a trader said.

XO Communications’ term loan gained to 99 bid, par offered from 98 bid, 99 offered.

Moving to the primary market, GCA Services Group Inc. extended the soft call protection on its first-lien term loan and made some changes to the incremental allowance and restricted payments basket.

In addition, KAR Auction Services Inc. and Armstrong World Industries Inc. joined this week’s new issue calendar.

KAR Auction Services emerged with plans to hold a lender call at 1 p.m. ET on Tuesday to launch $1.45 billion in bank debt, a market source said.

The debt consists of a $300 million five-year revolver and a $1.15 billion seven-year term loan B-3.

Armstrong World Industries scheduled a lender call for 1 p.m. ET on Tuesday to launch a $250 million seven-year term loan B, according to a market source.

The company’s $1.05 billion credit facility (B1/BB+) also includes a $200 million revolver and a $600 million term loan A, the source said.

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