Intelsat bonds remain in retreat following earnings, adviser news; oil names weaken again

By Stephanie N. Rotondo

Settle, Feb. 23 – Intelsat SA bonds continued to be in focus in the distressed debt market on Tuesday, a day after the company said it had hired advisers to look into improving its balance sheet.

The Luxembourg-based satellite services provider made the announcement Monday when it released its latest earnings. The news sent the company’s debt down 8 to 10 points on the day. It dropped at least that much Tuesday, though some issues declined as much as 12 to 14 points.

As for oil and gas, weakness seeped back in as oil prices retreated over 4.5% on the day. The decline came as Saudi Arabia’s oil minister, Ali Al-Naimi, told the IHS CERAweek conference in Houston that production cuts were not on the table. Al-Naimi said proposals to freeze production would only be implemented if more producers agreed to the plan.

With oil’s dive, Chesapeake Energy Corp.’s 6½% notes due 2017 dipped a quarter-point to 37¾, a trader said. Oasis Petroleum Inc.’s 6½% notes due 2022 meantime lost half a point to close at 52½.

Energy XXI Ltd.’s 8¼% notes due 2018 had a big percentage move, falling half a point to 3 5/8, a trader said.

In oil and gas services, Hornbeck Offshore Services Inc.’s 5 7/8% notes due 2020 were seen declining 9 points from levels seen mid-last week to finish Tuesday at 43. Navios Maritime Holdings Inc.’s 7 3/8% notes due 2022 dropped almost a point to 34½.

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