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Intelsat: Market pressure continues

Global satellite operator Intelsat’s share price slide continued December 8th, falling a further 5.67 per cent to finish the day at just $3.83. December 9th saw it recover by almost the same amount, but the past 5 days have seen trading in Intelsat stock fluctuate between $4.48 and down to the current $4.05, and pushing the company’s market capitalisation downward to barely $400 million.

On November 30th we reported that the company’s market capitalisation, based on its then share price of $4.65 was down to just $490 million, and was considered too close to market capitulation and where investors had seemingly given up on the stock at any price.

Intelsat’s debt burden is some $14.7 billion. The company enjoyed overall revenues of $581 million in Q3.

There has been no formal comment from the company, or its principal shareholder, although trading and satellite operational plans remain quite solid, and in terms of its trading prospects its position has not changed. It will launch it next giant satellite, I-29e, and one of its significant ‘Epic’ series, towards the end of January.

One major shareholder is private equity firm BC Partners (formerly the equity investment arm of Baring Capital Investors) and it holds 58.7 per cent of Intelsat (62.9 million shares). Other investors include Silver Lake Management (12.9 per cent, 13.9 million), Fidelity Management & Research (8.67 per cent, 9.3 million) and Arbiter Partners Capital Management (4.22 per cent, 4.5 million).

The company’s former president and CEO, Dave McGlade retains a 3.58 per cent stake, representing 3.83 million shares.

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