PG&E notes trade better amid creditor negotiations; Intelsat improves in telecom space

By James McCandless

San Antonio, Jan. 16 – Newsmakers in the utilities and telecom sectors continued to drive activity in the back half of the week.

PG&E Corp.’s notes were better amid ongoing negotiations with creditors and a legal fight over fire safety compliance.

The 6.05% notes due 2034 rose ¾ point to close at 114½ bid.

In federal court on Wednesday, the San Francisco-based bankrupt electric utility told a judge that it is just shy of complying with its probationary requirements for wildfire prevention.

The company said that it had not met commitments it made under a recent safety plan to inspect and repair power lines, clear debris near power lines and cut tree branches that may interfere with those lines.

The company blamed circumstances beyond its control.

Despite this, its notes saw a fifth straight day of positivity as PG&E continues negotiations with creditors over a compromise restructuring plan.

Meanwhile, in telecom, Intelsat SA’s issues were seen improving as it urges the Federal Communications Commission to quickly transition to 5G.

Intelsat Luxembourg SA’s 8 1/8% senior notes due 2023 improved by ¾ point to close at 63 bid. The 9½% senior notes due 2023 picked up 1 point to close at 73½ bid.

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