Author Topic: I - Intelsat  (Read 7033 times)

bizaro86

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Re: I - Intelsat
« Reply #20 on: November 20, 2020, 09:54:00 AM »
What do folks think of David Tepper buying into Intelsat earlier this year? Where do you value this company now?

I think the equity is probably a zero - they declared bankruptcy for a reason. Also, the holdco debt (which is structurally subordinated below the other levels) is trading at less than $0.05 per dollar of face value. If you think anything is going to the equity, you'd almost certainly be better of buying the holdco debt - potential 20 bagger but its likely a zero.

I have a small position further up the capital structure, although I bought just after the bankruptcy at ~$0.50 and might sell now that its around $0.67. Obviously the risk-reward buying a debt instrument at $0.67 is quite different, the maximum gain is 50%, so no multi-bagger potential.

I haven't been following the case that closely, and the position is small, so I should probably sell...