Codere Failure-to-Pay Credit Event Ruling Requested From ISDA
The International Swaps & Derivatives Association is to rule on whether Codere Finance (Luxembourg) SA’s late payment of a bond coupon is a credit event that could trigger $444 million of default swaps.
The Spanish gaming company said Sept. 13 that it was delaying payment on its $300 million of 9.25 percent bonds by two days until today. ISDA’s determinations committee was asked whether the delay constituted a failure-to-pay event, according to the industry group’s website.
The Madrid-based company that operates betting parlors from Italy to Argentina said last week that it paid a penalty to change the terms of a 99 million-euro ($132 million) loan from private-equity firms Canyon Partners LLC and Blackstone Group LP’s GSO Capital Partners requiring the facility to be repaid should the bond coupon be paid.
There are a total of 3,192 contracts covering a net $444 million of Codere’s debt, Depository Trust & Clearing Corp. data show. Codere shares have risen almost 15 percent since the debt agreement and were at 1.35 euros, the highest since July 10, at 11:40 a.m. in Madrid.
It costs 5.15 million euros in advance and 500,000 euros annually to insure 10 million euros of the company’s debt for five years, according to data provider CMA’s prices for credit-default swaps.
To contact the reporter on this story: Katie Linsell in Madrid at
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To contact the editor responsible for this story: Shelley Smith at
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