Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1 (11 lettori)
- Creatore Discussione TRADING_IDEAS
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come fai a interessarti ad un bond con cedola del 4.1....
fabriziof
Forumer storico
infatti non mi interesso lo aggiungo agli auriferi da tenere sott'occhio
NoWay
It's time to play the game
NoWay
It's time to play the game
arkymede74
Forumer storico
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97% acceptance on the exchange offer – Moody’s views it as a selective default
Edcon announced last week the final results of the exchange offer on its 13.375% senior unsecured notes due 2019 (EUR425M). As a reminder, Edcon proposed the ditressed exchange of these notes into a combination of senior PIK notes.
Having reached an acceptance rate of over 90% (97.3% to be precise), this allows the company to implement a series of amendments, including the reduction of the principal by up to 72.5% for the few holders that did not participate in the exchange, the reduction of the coupon to 5% (becoming PIK) and the extension of the maturity date to 2022.
Overall, the exchange offer will lead to the issue of EUR200M senior 13.375% PIK notes due 2019 (option A notes), EUR241M 13.375% senior PIK notes due 2019 (option B notes) and EUR22M of new super senior 8% PIK notes. This will lead to a substantial reduction in both cash interest expenses and cash indebtedness for the company. Discussions continue with other noteholders for further optimization of the capital structure.
Moody’s released a statement confirming that it views this distressed exchange offer as an effective limited default on the senior unsecured notes. We expect S&P to take a similar course of action and consider the successful exchange offer as a selective default (SD) on the bonds and a default (D) for the issuer.
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