MNI INTERVIEW: Fed QT Likely To Linger After Rate Cuts Start

MNI BRIEF: BOE Markets Head Sees Wider Collateral, More Repos

MNI PBOC WATCH: PBOC Cuts 7-Day Rate As Reconfigures Framework

MNI China Daily Summary: Monday, July 22

MNI BRIEF: PBOC Lowers Ceiling of Its Interest Corridor

MNI: PBOC Sets Yuan Parity Higher At 7.1335 Mon; -1.18% Y/Y

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

CBRT Data Watch

NBH Data Watch

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

SES and Intelsa Resume Merger Talks; EUR 29s ~18bps Cheaper

COMMUNICATIONS
Credit BulletsBulletHomepagemarkets-real-timeCredit
  • BBG sources report that SES SA (Baa3/BBB) and Intelsat SA (NR/NR/BB-) have resumed merger talks after initial attempts in 2023 failed. The sources note the potential for Intelsat to attract other buyers. Talks are ongoing and both companies are working with advisors though no deal is guaranteed.
  • Tough situation to get a read on given the lack of public financial reports for Intelsat. Consolidation of some type seems to make sense to us on some level given overlaps between the two businesses and threats faced from the likes of Starlink. However, the sharp move lower in SES equity and move wider in credit spreads just now implies concerns and we note talk from the last round of negotiations about the potential for a high degree of regulatory scrutiny.
  • This deal aside, we had previously view viewed the SES credit as attractive; each of their lines are held in CSPP though the 29s seem to have decent flows and offered pickup vs. similarly rated TMT names. Strong deleveraging using C-Band proceeds and the long-awaited receipt of mPOWER revenues in the coming months spoke well to the potential for a rating upgrade though the potential merger with lower rated Intelsat is a clear complication here.
203 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • BBG sources report that SES SA (Baa3/BBB) and Intelsat SA (NR/NR/BB-) have resumed merger talks after initial attempts in 2023 failed. The sources note the potential for Intelsat to attract other buyers. Talks are ongoing and both companies are working with advisors though no deal is guaranteed.
  • Tough situation to get a read on given the lack of public financial reports for Intelsat. Consolidation of some type seems to make sense to us on some level given overlaps between the two businesses and threats faced from the likes of Starlink. However, the sharp move lower in SES equity and move wider in credit spreads just now implies concerns and we note talk from the last round of negotiations about the potential for a high degree of regulatory scrutiny.
  • This deal aside, we had previously view viewed the SES credit as attractive; each of their lines are held in CSPP though the 29s seem to have decent flows and offered pickup vs. similarly rated TMT names. Strong deleveraging using C-Band proceeds and the long-awaited receipt of mPOWER revenues in the coming months spoke well to the potential for a rating upgrade though the potential merger with lower rated Intelsat is a clear complication here.