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To: The Ox who wrote (5735)5/14/2020 11:48:52 AM
From: The Ox
   of 5826

Intelsat declares bankruptcy as means to fund C-band spectrum clearing
by Caleb Henry — May 14, 2020
Intelsat's Tysons Corner, Virginia U.S. headquarters. Credit: Intelsat

WASHINGTON — Intelsat, the world’s second largest satellite operator by revenue, filed for Chapter 11 bankruptcy protection late May 13 as a means to ease its nearly $15 billion debt load and participate in an FCC spectrum clearing program.

Intelsat said it has secured a $1 billion debtor-in-possession financing commitment that, following court approval, will allow the company to fund continuing operations and get started clearing C-band spectrum under a program that could net the operator $4.86 billion.

The Luxembourg and Virginia-based operator filed for Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond. The company operates a fleet of roughly 50 satellites, and has another, Galaxy-30, scheduled to launch this summer on an Ariane 5 rocket.

Intelsat was thought to be headed toward bankruptcy after it skipped a $125 million interest payment in April, triggering a 30-day grace period before defaulting. The company’s second largest shareholder, Cyrus Capital Partners, told Intelsat it should avoid bankruptcy and anything that would jeopardize its chance at claiming the $4.86 billion in accelerated spectrum-clearing payments. That advice was opposite Intelsat’s third largest shareholder, Appaloosa, which urged Intelsat to use bankruptcy as a means of getting the FCC to pay the operator a higher amount.

Stephen Spengler, Intelsat’s chief executive, used the May 13 bankruptcy announcement to confirm Intelsat will participate in the FCC’s accelerated clearing program.

“We intend to move forward with the accelerated clearing of C-band spectrum in the United States and to achieve a comprehensive solution that would result in a stronger balance sheet,” Spengler said. “This will position us to invest and pursue our strategic growth objectives, build on our strengths, and serve the mission-critical needs of our customers with additional resources and wind in our sails.”

To receive the $4.86 billion, Intelsat has to compress customers from 500 megahertz of C-band into 200 megahertz by December 2023, two years faster than the FCC’s deadline to clear out the spectrum. The FCC is transferring the remaining 300 megahertz of spectrum, used today mainly for satellite broadcasting, to cellular operators for 5G networks.

David Tolley, Intelsat’s chief financial officer, said the company will need to spend around $1.6 billion on the manufacture and launch of new satellites, plus video compression technology and signal filters on the ground to clear C-band for 5G wireless signals. Half that amount, $800 million, will need to be spent by June 2021, before receiving any FCC reimbursement, he said.

Those upfront costs have “created an even greater need for the Company to obtain financing to meet the FCC’s quickly approaching Accelerated Relocation Payment deadlines,” Tolley wrote in Intelsat’s bankruptcy filing.

Tolley said the coronavirus pandemic is projected to reduce Intelsat’s 2020 revenue by $160 million because airplanes and cruise ships aren’t using as much satellite Wi-Fi, and the absence of live sporting events gutted demand for occasional use television broadcasting.

Intelsat General Corp., the military and government business arm of Intelsat, is not part of the Chapter 11 proceedings, Intelsat said.

Intelsat is the third large satellite communications company to declare bankruptcy this year, following network operator Speedcast in April, and megaconstellation startup OneWeb in March.

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To: The Ox who wrote (5786)5/20/2020 10:01:01 PM
From: The Ox
2 Recommendations   of 5826
NQ100 getting frothy....
Message 32745546

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From: The Ox5/21/2020 10:10:16 AM
1 Recommendation   of 5826
I can't help but wonder about how the market is viewing the world at the moment. I know this ETF has very little volume but it's amazing to think that it's tracking the performance of investment-grade commercial mortgage-backed securities. I know this is an area where the FED is buying everything in sight but for it to be exactly where it was before the March swoon seems a bit "overpriced" to this observer.

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From: The Ox5/21/2020 10:18:23 AM
   of 5826

VIX still showing plenty of fear, even as it's winding down. SPX has recovered 65% of it's fall.

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From: The Ox6/10/2020 11:43:39 AM
   of 5826
Awesome set of charts:

Message 32779675

What really stands out for me is in the first chart, how high the NYSE advance/decline ratio has just reached. Conflicted between how bullish this looks and how it also may be indicating how frothy this market has become. More and more I hear the talking heads stating how we're now pricing in 2022 and beyond.

Ok... we'll see. The trend is your friend until it isn't. Not sure we've reached balloon levels but the speed of the advance is a bit of a concern. Since the market is a "beauty contest", we know what happens if there's a reason to believe we've overpriced the current environment (see Feb 2020).

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From: Sultan6/10/2020 11:23:49 PM
3 Recommendations   of 5826

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To: Sultan who wrote (5791)6/10/2020 11:49:12 PM
From: Return to Sender
   of 5826
That is an awesome cartoon!


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To: Sultan who wrote (5791)6/11/2020 3:23:53 PM
From: Robert O
   of 5826
what's extra funny too is that the bull is so loaded his head is near horizontal to the surface, plus if you look closely he's still properly (a friend told me how this works) pressing closed one nostril with his hoof for the next line.

would be even funnier tho if he was using a rolled up hundred dollar bill... just like the real wall streeters! only opportunity missed.

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From: Sultan6/11/2020 10:56:20 PM
   of 5826
Robin Williams ..

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From: The Ox6/16/2020 10:13:15 AM
   of 5826

Message 32789709

I dug up his email and wrote to him. “It must be a strange sensation,” I said, “to have been terribly right about something you didn't want to be right about.”
When he called me the next afternoon, the US had just passed 4,000 cases of Covid-19, and Wolfe sounded beleaguered. “Right now I'm a little bit—what's the right word for it—overwhelmed,” he said. But he seemed decidedly unenthusiastic about discussing his own prescience. “I'm not interested in Monday morning quarterbacking,” he said. “If you are the person who says the sky is falling and it falls, you definitely feel like saying ‘Why didn't people listen to me?’ But there are a lot of people saying the sky is falling about other things, and it doesn't.”

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