Intelsat varies after satellite malfunction; PG&E lower following restructuring deal

By James McCandless

San Antonio, Jan. 24 – At the end of the week for the distressed debt market, the focus honed in on newsmakers in the telecom and utilities sectors.

Intelsat SA’s notes varied in direction after news broke of a broadcast satellite it operates malfunctioning in orbit.

Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 picked up 1¼ points to close at 57¼ bid. Intelsat Jackson Holdings SA’s 7¾% senior notes due 2025 held level at 91¾ bid.

Both tranches combined to see about $50 million changing hands by the end of the session.

After the close on Thursday, news broke that a broadcast satellite operated by the Luxembourg-based telecom may explode in orbit due to a malfunction.

DirecTV, which owns the satellite, said that it “suffered a major anomaly that resulted in significant and irreversible thermal damage to its batteries.”

Meanwhile, in utilities, PG&E Corp.’s paper shifted lower after Thursday’s restructuring deal reached with creditors.

The 6.05% bonds due 2034 dipped ½ point to close at 114½ bid.

The move off of recent highs came two days after the San Francisco-based bankrupt electric utility struck a deal with a group of creditors that resolves disputes surrounding interest payments, make-whole payments and its debt structure moving forward.

© 2015 Prospect News.
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