Frontier stays busy, ends lower; Intelsat gains amid hopeful merger buzz; Valeant better

By Stephanie N. Rotondo

Seattle, July 13 – A distressed debt trader said that Frontier Communications Inc. and Intelsat SA were Thursday’s notable names.

There was no specific reason that Frontier was notable, aside from the fact that, as has been the case of late, it was actively traded.

The paper was also lower on the day, after managing to hold steady on Wednesday.

“They were very active again and down a good bit,” a trader said, though he noted that there was some intraday recovery, which allowed the bonds to end better than their session lows.

The 11% notes due 2025 were “still down about a point on the day,” the trader said.

He pegged the notes at 88½ at day’s end. That was a point better than the intraday low.

As for Intelsat, its bonds were better on the day on chatter the company’s recently failed merger with OneWeb LLC could be revived.

Meanwhile, Valeant Pharmaceuticals International Inc.’s debt was getting a small boost on word the company planned to redeem its $500 million outstanding 6¾% notes due 2019.

A trader said the 5 7/8% notes due 2023 were “a shade higher” at 86.

The company will use cash on hand to fund the redemption that will occur on Aug. 15. Once completed, Valeant will have reduced its debt by more than $4.8 billion since the end of the first quarter of 2016.

© 2015 Prospect News.
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