CREDIT: Codere Will Narrowly Avoid Default for Now, Lucror Says
2013-05-28 09:46:53.100 GMT
By Charles Daly
May 28 (Bloomberg) -- Codere (Caa3/CCC) has tackled its Argentinian maturities and the banks in Argentina are expected to support the co. in meeting fees related to gaming licenses, writes Lucror analyst Tanvi Arora in client note.
- NOTE: Yday co. agreed with Banco Marco to extend maturity of ARS70m loan.
- Renewals and extensions of gaming licenses in Argentina are positive for Codere: Arora points out means co. has to pay fees of ARS124.4m and ARS87.6m in 8 monthly installments starting in August, adding a further liquidity burden on co.
- Co. still needs to secure additional liquidity in short term to avoid defaulting on repayment of its EU30m RCF and interest payments on the 2015 bond in June 2013.
- Maintains very high risk assessment for Codere, citing potential for restructuring after June.
- NOTE: CODERE 8.25% 2015 bonds have fallen almost 14 points since co. announced 1Q net loss of EU20.9m on May 14, according to Bloomberg data.
- Bonds’ fair value in low-60s, BofAML said May 20.