IFR International - 03.11.2018

!ûFEWûDAYSûLATER ûTHEû3PANISHûDISCOUNTû
RETAILERûRATINGSûWEREûCUTûTOû"A""
ûFROMû
"AA"""
ûBYû-OODYSûANDû30
#OTOûADDEDûTHATûHEûISûNOTûAWAREûOFûANYû
further issues regarding the 2017 accounts
RESTATEMENT ûWHICHûSAWûTHEûCOMPANYSûNETû
PROlTûREVISEDûDOWNûTOûõMûFROMûõM û
WHICHû$)!ûEXPECTSûTOûREDUCEûITSûEQUITYûLEVELû
BYûõM
“I can assure that at the next covenant
TEST ûTHATûISûGOINGûTOûBEûTHEûCLOSINGûOFû
NEXTûYEAR ûWEûWILLûHAVEûRENEGOTIATEDû
EVERYTHING ûANDûITûISûMYûCOMMITMENTûNOTûTOû
BREACHûANYûCOVENANTûINûTHEûFUTURE vû#OTOû
added.
#OTOûALSOûSAIDûTHATûõMûOFû$)!SûCREDITû
FACILITIESûREMAINEDûUNDRAWN ûCOMPAREDû
WITHûAROUNDûõMûINûUNE
)Nû3EPTEMBERûûONEûFACILITYûOFû
õMûSAWûITSûMATURITYûEXTENDEDûBYûTHREEû
YEARSûTOûUNEûû4HISûWASûBACKEDûBYûAû
CLUBûCOMPRISINGû".0û0ARIBAS û
#OMMERZBANK û3OCIETEû'ENERALE û""6! û
"ANCOû3ANTANDER û-5&' û"ARCLAYS û0û
Morgan and ING.
h7EûHAVEûSIGNIlCANTûDEBTûMATURITIESû
FORûTHEûNEXTûYEAR ûBUTûWEûAREûCONlDENTû)û
think that we have time to address all ...
DEBTûMATURITIESû/FûCOURSE ûWEûAREûFOLLOWINGû
a proactive approach in relation to
MATURITIESûANDûxûRElNANCINGûOPTIONS vû
Coto said.
)TSûNEXTûBONDûMATURITYûISûFORûõMûINû
ULYû

STRATEGY
!NALYSTSûWEREûALSOûEXPECTINGûTHEûCOMPANYû
TOûOUTLINEûITSûRECOVERYûSTRATEGYûGOINGû
FORWARDûASûTHEYûTRYûTOûDETERMINEûWHETHERû
the business is investible.
$)!ûSAIDûTHATûITûWILLûFOCUSûONûITSû3PANISHû
OPERATIONSûANDûCUTûSPENDING ûWHILEûSEEKINGû
STRATEGICûALTERNATIVESûFORûNON
COREû
BUSINESSESû)TûSEESûûASûAûTRANSITIONûYEAR û
BEFOREûTURNAROUNDûINû

#OTOûSAIDûTHAT ûINûADDITIONûTOûTHEûONGOINGû
PROCESSûTOûDISPOSEûOFû$)!SûCASH
AND
CARRYû
ACTIVITY ûONEûSUCHûNON
COREûASSETûHEûHASû
IDENTIlEDûISû#LAREL ûAûSTOREûLINEûFOCUSEDûONû
cleaning and cosmetics in Spain and
Portugal.
$)!ûSHARESûDROPPEDûTOûõûAFTERûTHEûCALL û
HAVINGûCLOSEDû-ONDAYSûSESSIONûATûõ û
while bonds maintained the gains made
SINCEûTHEûPREVIOUSû&RIDAY
4HEûCOMPANYSûõMûûûBONDû
HITûAûLOWûOFûûCASHûPRICEûONû4HURSDAYû
/CTOBERûûBUTûTRADEDûUPûTOûûWHENûTHEû
RESULTSûWEREûRELEASEDûONû4UESDAY ûACCORDINGû
TOû4RADEWEBûDATAû4HEûûûNOTEûWASû
BIDûAROUNDû ûOFFûAûLOWûOFû
$)!ûALSOûHASûAûõMûûûNOTEû
outstanding.
-EANWHILE ûTHEû%UROPEANû#ENTRALû"ANKû
STILLûHELDûALLûTHREEû$)!ûBONDSûUNDERûITSû

Corporate Sector Purchase Programme as of

/CTOBERûûACCORDINGûTOûDATAûRELEASEDûLASTû

week.

$)!ûWASûSPUNûOFFûBYû&RENCHûSUPERMARKETû

CHAINû#ARREFOURûINûû/VERûTHEûLASTûYEARû

,ETTERONEûTHEûINVESTMENTûVEHICLEûOFû2USSIANû

BUSINESSMANû-IKHAILû&RIDMANûHASûBUILTûAû

STAKEûOFûûINûTHEûCOMPANY

CMC DI RAVENNA APPOINTS

MEDIOBANCA

)TALIANûCONSTRUCTIONûlRMûCMC DI RAVENNA has

appointed Mediobanca ASûAûlNANCIALûADVISERû

according to Reuters.

4HEûCOMPANYSûBONDSûHAVEûBEENûTRADINGû

ATûDISTRESSEDûLEVELSûSINCEû3EPTEMBERûWHENûITû

REVEALEDûAûDELAYûTOûTHEûCOLLECTIONûOFûITSû

RECEIVABLESûANDûADVANCEûPAYMENTSûINûITSû

HALF

YEARûRESULTSûWHICHûPUSHEDûFREEû

CASHmOWûTOûAûNEGATIVEûLEVEL

4HEûREPORTûFROMû7EDNESDAYûEVENINGû

QUOTEDûAûCOMPANYûNOTEûWHICHûSAIDûTHEû

appointment was “to manage the

CONTINGENTûSITUATIONûOFûlNANCIALûTENSIONvû)Tû

ALSOûSAIDû0ROFESSORû!NDREAû:OPPINISûLAWû

lRMûHADûBEENûAPPOINTEDûASûLEGALûADVISER

4HEûCOMPANYûHASûAûõMûûSENIORû

UNSECUREDûûANDûAûõMûûSENIORû

unsecured 2023 bond outstanding. Trading

HASûBEENûVERYûVOLATILEûBOTHûBONDSûLOSTû

AROUNDûûPOINTSûONû7EDNESDAYûANDûWEREû

BIDûASûLOWûASûûBUTûTRADEDûUPûTOûAROUNDû

ûONû4HURSDAYûMORNINGûACCORDINGûTOû

Tradeweb data.

WAGAMAMA BONDS PUSH PAR ON

TAKEOVER

WAGAMAMA bonds pushed closer to par after

THEûCOMPANYûANNOUNCEDûTHATûITûWILLûBEû

ACQUIREDûBYû4HEû2ESTAURANTû'ROUP

7AGAMAMASûaMûûûSENIORû

SECUREDûBONDûWASûBIDûAROUNDûûONû

4UESDAYûFROMûûATûTHEûSTARTûOFûTHEûWEEKû

The potential sale was reported in the

"RITISHûPRESSûONû-ONDAYûANDûCONlRMEDûBYû

THEûCOMPANYûONû4UESDAY

4HEû!SIAN

STYLEûNOODLEûCHAINûSAIDûTHEû

BONDûWHICHûISûPORTABLEûBELOWûAûNETûLEVERAGEû

RATIOûOFûXûISûEXPECTEDûTOûREMAINûINûPLACEû

FOLLOWINGûTHEûACQUISITIONû7AGAMAMAû

REPORTEDûNETûLEVERAGEûOFûXûINûITSûQUARTERLYû

RESULTSûRELEASEûINû!UGUST

4HEûCHAINûISSUEDûTHEûBONDûINû*ULYûûATû

THEûPEAKûOFûSTERLINGûISSUANCEûWHICHûREACHEDû

RECORDûLEVELSûDURINGûTHEûYEAR

4HISûWOULDûBEûTHEûFOURTHûISSUERûTHISûYEARû

TOûEXERCISEûPORTABILITYûTHISûYEARûAFTERû

'ERMANûRETAILERû#"2û&ASHIONûHOTELSûCHAINû

2ADISSONûANDû$UTCHûRETAILERû(%-!

4HEûaMûACQUISITIONûWHICHûVALUESû

THEûCHAINûATûaMûISûEXPECTEDûTOûBEû

FUNDEDûBYûAûaMûRIGHTSûISSUEûANDûISû

conditional on shareholder approval at a

general meeting due to be held in

November.

#URRENTûOWNERSûPRIVATEûEQUITYûlRMSû

$UKEû3TREETûANDû(UTTONû#OLLINSûBOUGHTûTHEû

COMPANYûINûûINûAûDEALûTHATûVALUEDûTHEû

COMPANYûATûAROUNDûaM

STRUCTURED FINANCE

EMEA MBS

SAECURE 16 SELLS AT 35bp

AEGON HYPOTHEKEN priced its SAECURE 16 Dutch

RMBS at a 35bp discount margin on

7EDNESDAYûMARKINGûAûBPûWIDENINGûFORû

$UTCHûPAPERûSINCEûTHEûSTARTûOFûTHEûYEAR

$UTCHû2-"3ûINûûWASûOPENEDûBYû

/BVIONSû3TORMûPROGRAMMEûINû*ANUARYû

WHICHûSOLDûõBNûOFûlVE

YEARû4RIPLEû!SûATû

BPû!EGONûnûWHICHûWASûBRINGINGûITSûlRSTû

DEALûINûFOURûYEARSûnûSOLDûAûSMALLERûANDû

SLIGHTLYûSHORTERûTRANCHEûOFûõMû

YEARû

notes.

h0ARTûOFûTHISûISûDRIVENûBYûMOVEMENTûINû

COVEREDûBONDSvûSAIDûONEûTRADERûh-OSTû

RMBS investors have seen the widening in

covereds following the slowdown of ECB

PURCHASESv

The iBoxx Netherlands covered bond

INDEXûHASûWIDENEDûBYûAROUNDûBPûSINCEû

*ANUARYûASûTHEû%#"ûSTARTEDûBUYINGûFEWERû

covered bonds for its purchase programme.

)Nû$UTCHû2-"3ûTHEûlRSTûBIGûLEGûOFû

widening came in September when another

3TORMûISSUEûSOLDûõMûlVE

YEARSûATûBP

That had since moved a couple of basis

POINTSûTIGHTERûINûSECONDARYûWITHûAûSMALLû

PIECEûTRADEDûATûBPûINûTHEû3TREETûONû-ONDAYû

morning before IPTs of high 30s were

RELEASEDûFORû!EGONSû3AECUREûLATERûTHATûDAY

4HOSEû)04SûWEREûRElNEDûTOûGUIDANCEûOFû

BPûTOûBPûAHEADûOFûTHEûBPûlNALûSPREADû

WHEREûTHEûBOOKûWASûHEALTHILYûCOVEREDûWITHû

MOREûTHANûõBNûOFûORDERS

The print was 1bp outside the most recent

EUROûDENOMINATEDû2-"3û"0#%SûINAUGURALû

&RENCHûDEALûWHICHûSOLDûõBNû

YEARûNOTESû

ATûBP

4HEûSECONDARYûMARKETûFORû3TORMûPAPERû

has since moved out towards the high 20s to

BPûANDûTHEûNEWûISSUEûPREMIUMûOFû

Saecure is expected to erode in the coming

DAYSûANDûTAKEûTHOSEûSECONDARYûLEVELSûCLOSERû

to 30bp.

!EGONSûPREVIOUSû3AECUREûFROMû/CTOBERû

ûUSEDûTHEûFAST

PAYûANDûSLOW

PAYû

structure that used to be traditional for

$UTCHû2-"3û3AECUREûûSOLDûAûõMûTWO

YEARûATûBPûOVERû%URIBORûANDûAûõBNû



YEARûATûBP