Intelsat up on numbers; hospitals hit again; energy names off despite crude price rise

By Paul Deckelman

New York, June 27 –Traders saw relatively quiet dealings in the bonds of underperforming and distressed issues on Thursday, in line with lighter flows within the larger high-yield bond market, which was mostly lower.

But Intelsat SA’s various note issues were higher on the day, gaining altitude after the communications satellite company reported better second-quarter numbers and expressed confidence in its ability to meet its debt maturities over the next few years.

Hospital operators’ bonds, on the other hand, remained under pressure after Community Health Systems, Inc. issued preliminary second-quarter numbers, including sagging sales and wider losses. Its own bonds were the volume leaders on the day, while the contagion spread to sector peer Tenet Healthcare Corp.’s bonds.

Energy names were seen largely on the downside despite a fourth straight day of higher crude oil prices on world commodity markets. Losers included QEP Resources, Inc., Whiting Petroleum Corp. and EP Energy Corp. But California Resources Corp., normally a sector bellwether credit, was little traded on the day.

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