Intelsat notes higher as hedge fund discloses stake; PG&E eyed after Q4 earnings release

By James McCandless

San Antonio, Feb. 18 – The distressed debt space focused on newsmakers in the telecom and utilities spaces on Tuesday.

Intelsat SA’s notes moved higher after a hedge fund disclosed a new stake in the company’s common stock.

Intelsat Luxembourg SA’s 8 1/8% senior notes due 2023 added ˝ point to close at 42˝ bid. The 9˝% senior notes due 2023 gained 2 points to close at 63˝ bid.

The Luxembourg-based satellite operator’s structure was sent higher after hedge fund Appaloosa Management disclosed that it had purchased a 2.1% stake in the company through its common stock.

As the stake was disclosed, fund manager David Tepper wrote a letter to the board of directors advocating for a Chapter 11 bankruptcy filing.

Tepper wants the filing to force the Federal Communications Commission to renegotiate the terms of a scheduled C-band spectrum auction, calling the current arraignment unfair.

“It’s the usual hedge fund business of making noise so you can get paid,” a trader said.

In the utilities space, PG&E Corp.’s paper was active but unchanged after releasing its earnings results for the fourth quarter.

The 6.05% paper due 2034 held level to close at 115 bid.

Early Tuesday morning, the San Francisco-based bankrupt electric utility released its fourth-quarter earnings report, yielding mixed results.

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