Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1

[Imark]

Lusinghiero articolo dell'Irish Indipendent su Eircom...

*.*.*

Eircom has fifth riskiest debt levels in the world

By Emmet Oliver

Monday June 21 2010

Eircom is now the fifth riskiest company in the world in terms of the chances it will default on, or restructure, its debt, bond market data shows.
The cost of insuring some forms of Eircom debt is now the fifth most expensive in the world. The cost has been surging this year and spiked alarmingly in May, around the time of the company's last quarterly results.
Analysts of the company have expressed disappointment at the lack of detail on how it plans to service and reduce its debt load which amounts to €3.5bn. Some bondholders are reported to have appointed advisers.
The company's debt is held through ERC Ireland Finance Limited, which has denied market suggestions that a restructuring, or even a default, is on the cards. But the market appears to take a different view based on credit default swaps (CDSs) for the company.
These show that only debt belonging to Belgian directories publisher Truvo; US bond insurer Ambac Financial; Japanese consumer-loans company Takefuji; and New York-based insurer MBIA cost more to insure than Eircom.
CDS spreads are a key indicator of financial stress and market concern over the sustainability of a company's debt load. Eircom, which is ultimately owned by Temasek Holdings of Hong Kong and an Employee Share Ownership Trust, has only said it is considering ideas for altering its capital structure.
"The company retains a strong cash balance and positive headroom in servicing its debt,'' it said in May when announcing its nine-month results to March 31.
While claiming that it had "headroom'' to service its debts, the company embarked on a major cost-cutting drive and slashed a €407m pension deficit.
The company remains the largest provider of fixed lines in Ireland and has 703,000 customers, but both fixed-line and mobile-phone revenues have been falling. Debt levels, meanwhile, remain high and Eircom is believed to be the most highly geared telco in Europe.
Leeway
The majority of the debt falls more than five years from now, giving Eircom some leeway. However, much of the debt has been downgraded and is trading well below par value in the secondary market.
The company is actually guaranteeing "indebtedness'' of €3.7bn, which comes in the form of a senior credit facility, a floating rate note and another revolving credit facility.
- Emmet Oliver
Irish Independent

Eircom has fifth riskiest debt levels in the world - Irish, Business - Independent.ie

Potrebbero anche provare a lanciare una tender offer sul debito dai livelli di prezzo attuali... per gli obbligazionisti sarebbe fra le ipotesi più interessanti...

 

[Zorba]

Potrebbero anche provare a lanciare una tender offer sul debito dai livelli di prezzo attuali... per gli obbligazionisti sarebbe fra le ipotesi più interessanti...

L'idea (personalissima) che mi sono fatto è che il nuovo azionista sa come muoversi e non è escluso un qualcosa di simile a quello fatto da Safilo. Tender offer sul debito finalizzato al raggiungimento di una quota minima e ricapitalizzazione. Bisogna vedere cosa ne pensano le banche...

 

[qquebec]

L'idea (personalissima) che mi sono fatto è che il nuovo azionista sa come muoversi e non è escluso un qualcosa di simile a quello fatto da Safilo. Tender offer sul debito finalizzato al raggiungimento di una quota minima e ricapitalizzazione. Bisogna vedere cosa ne pensano le banche...

Alle banche interessa solo non perdere i soldi prestati (ragion per cui il default è impraticabile). L'operazione Safilo prevedeva l'ingresso del fondo HAL, attraverso l'aumento di capitale, come socio di maggioranza, subordinatamente alla riduzione del debito obbligazionario.
Eircom, invece, ha già un nuovo padrone da gennaio, la STT, che deve metterci dentro dei soldi (è inevitabile e lo sapeva anche prima di comprare la compagnia dagli australiani). Il punto è quanti. Ovviamente cercheranno di spendere il meno possibile, ma per farlo dovrebbero scaricare parte degli oltre 3 mld di euro di debiti contratti con le banche sul mercato (emissione di altri bond) o rivedere direttamente i covenants, ma costerebbe troppo nel lungo periodo e il problema verrebbe solo spostato più in là nel tempo. La draconiana riduzione dei costi di personale in atto serve al momento solo a compensare il calo dei ricavi e a stare a galla per un 1-1,5 anni ancora. L'unica strada praticabile (secondo me) è lo swap debt/equity o la vendita di assets strategici, quali la telefonia mobile Meteor.

 

[Zorba]

Alle banche interessa solo non perdere i soldi prestati (ragion per cui il default è impraticabile). L'operazione Safilo prevedeva l'ingresso del fondo HAL, attraverso l'aumento di capitale, come socio di maggioranza, subordinatamente alla riduzione del debito obbligazionario.
Eircom, invece, ha già un nuovo padrone da gennaio, la STT, che deve metterci dentro dei soldi (è inevitabile e lo sapeva anche prima di comprare la compagnia dagli australiani). Il punto è quanti. Ovviamente cercheranno di spendere il meno possibile, ma per farlo dovrebbero scaricare parte degli oltre 3 mld di euro di debiti contratti con le banche sul mercato (emissione di altri bond) o rivedere direttamente i covenants, ma costerebbe troppo nel lungo periodo e il problema verrebbe solo spostato più in là nel tempo. La draconiana riduzione dei costi di personale in atto serve al momento solo a compensare il calo dei ricavi e a stare a galla per un 1-1,5 anni ancora. L'unica strada praticabile (secondo me) è lo swap debt/equity o la vendita di assets strategici, quali la telefonia mobile Meteor.

Il mio discorso era nel senso che Eircom ha 1 opportunità (opare a 4 soldi HY e PIK) e 2 problemi da risolvere legati alle banche: 1) il rifinanziamento del debito senior e 2) il waiver dalle banche per opare HY e PIK. Per me, se le banche non vedono soldi freschi, non consentono l'opa su HY e PIK (in quanto sono debiti junior rispetto a loro).

 

[paologorgo]

vado un po' OT... libertà ai moderatori di togliere...

Nel corso della prima crisi del settore Telecom (post 2000), STT è stata piuttosto "creativa" nei suoi investimenti. Riporto quello che avevo seguito meglio, evidenziando che era una situazione sicuramente diversa:

Situazione pre-investimento:

>>Equinix scrambling to renegotiate debt

Equinix, which has 272 employees, said it is scrambling to renegotiate deals with lenders to avoid defaulting on $263 million in debt.
"We are substantially leveraged," Equinix warned investors in a filing two weeks ago with the Securities and Exchange Commission. "The company does not currently have sufficient cash reserves or alternate financing available to repay the amount outstanding."
Indeed, some investors are concerned the company could be forced to file for Chapter 11 bankruptcy protection, which would wipe out shareholders.
"The company stock is priced right now like there is going to be a bankruptcy," said Andrew Schroepfer, president of Tier 1 Research, a Minneapolis firm that tracks the data center market. But Schroepfer said he is optimistic that the company can work out deals with creditors to slash its debt and avoid bankruptcy.
"I am in the minority in believing in the company," he said.

Read more: Equinix scrambling to renegotiate debt

a quei tempi, fiduciosi nell'azienda c'eravamo in 3: Andy, Io e Shark...

la soluzione:

​

MOUNTAIN VIEW, Calif., Oct 2, 2002 (BUSINESS WIRE) -- Equinix, Inc. (Nasdaq:EQIX) today announced that it has entered into definitive agreements for a strategic merger whereby Equinix will integrate the assets of i-STT, a wholly-owned Internet infrastructure services subsidiary of Singapore Technologies Telemedia Pte Ltd (ST Telemedia), and Pihana Pacific, a leading provider of neutral Internet exchange data center services and managed e-infrastructure services in Asia-Pacific, into its core Internet exchange services business to form the largest global network neutral Internet exchange services company. The merged company will continue to operate under the Equinix name and management.
As part of the transaction, ST Telemedia, through its subsidiary STT Communications Ltd, will make a strategic investment in Equinix in the amount of $30 million. With this investment, Equinix also announced plans to substantially de-leverage the business by retiring more than $130 million in debt, including approximately 80% of its outstanding Senior Notes, through a combination of cash and equity, and a further reduction of its credit facility.

la situazione era piuttosto complessa, ma in sostanza STT investì 30 milioni di $, regalò ad Equinix un data center a Sigapore che non valeva niente, e forzò l'integrazione di una rete di data center in Asia che perdevano soldi, ma strategici per avere un buon footprint nella zona. Attraverso interessi PIK sulle notes arrivò alla fine a detenere quasi il 40% dell'azienda ristrutturata. L'investimento fu relativamente modesto (al tempo seppellirono un sacco di soldi in Global Crossing). Oggi EQIX capitalizza diversi bilioni di $.

Financial Terms of the Transaction
As a part of the transaction, ST Telemedia will become the largest strategic shareholder in Equinix with a contribution of the i-STT business and a cash investment of $30 million through the acquisition of Equinix's convertible debt. Approximately $23 million of the proceeds from this transaction will go towards retiring more than $130 million of Equinix's debt, including approximately 80% of the company's outstanding Senior Notes and a further reduction of the credit facility. The remainder will be used to fund on-going operations. As a part of this transaction, the company also expects to reset the loan covenants in its credit facility consistent with the anticipated future performance of the new company. The capitalization of the company post-closing and pre-conversion of the ST Telemedia convertible debt and warrants, will be as follows: existing Equinix shareholders will hold approximately 33% of the company; ST Telemedia will hold approximately 28%; former Pihana Pacific stockholders will hold approximately 21%; and the former Senior Noteholders will hold approximately 18% of the outstanding Equinix stock.

Equinix - Press Release

 

[Zorba]

Nel corso della prima crisi del settore Telecom (post 2000), STT è stata piuttosto "creativa" nei suoi investimenti. Riporto quello che avevo seguito meglio, evidenziando che era una situazione sicuramente diversa:

Situazione pre-investimento:

>>Equinix scrambling to renegotiate debt

Equinix, which has 272 employees, said it is scrambling to renegotiate deals with lenders to avoid defaulting on $263 million in debt.
"We are substantially leveraged," Equinix warned investors in a filing two weeks ago with the Securities and Exchange Commission. "The company does not currently have sufficient cash reserves or alternate financing available to repay the amount outstanding."
Indeed, some investors are concerned the company could be forced to file for Chapter 11 bankruptcy protection, which would wipe out shareholders.
"The company stock is priced right now like there is going to be a bankruptcy," said Andrew Schroepfer, president of Tier 1 Research, a Minneapolis firm that tracks the data center market. But Schroepfer said he is optimistic that the company can work out deals with creditors to slash its debt and avoid bankruptcy.
"I am in the minority in believing in the company," he said.

Read more: Equinix scrambling to renegotiate debt​

a quei tempi, fiduciosi nell'azienda c'eravamo in 3: Andy, Io e Shark... ​

la soluzione: ​

MOUNTAIN VIEW, Calif., Oct 2, 2002 (BUSINESS WIRE) -- Equinix, Inc. (Nasdaq:EQIX) today announced that it has entered into definitive agreements for a strategic merger whereby Equinix will integrate the assets of i-STT, a wholly-owned Internet infrastructure services subsidiary of Singapore Technologies Telemedia Pte Ltd (ST Telemedia), and Pihana Pacific, a leading provider of neutral Internet exchange data center services and managed e-infrastructure services in Asia-Pacific, into its core Internet exchange services business to form the largest global network neutral Internet exchange services company. The merged company will continue to operate under the Equinix name and management.
As part of the transaction, ST Telemedia, through its subsidiary STT Communications Ltd, will make a strategic investment in Equinix in the amount of $30 million. With this investment, Equinix also announced plans to substantially de-leverage the business by retiring more than $130 million in debt, including approximately 80% of its outstanding Senior Notes, through a combination of cash and equity, and a further reduction of its credit facility.

la situazione era piuttosto complessa, ma in sostanza STT investì 30 milioni di $, regalò ad Equinix un data center a Sigapore che non valeva niente, e forzò l'integrazione di una rete di data center in Asia che perdevano soldi, ma strategici per avere un buon footprint nella zona. Attraverso interessi PIK sulle notes arrivò alla fine a detenere quasi il 40% dell'azienda ristrutturata. L'investimento fu relativamente modesto (al tempo seppellirono un sacco di soldi in Global Crossing). Oggi EQIX capitalizza diversi bilioni di $.

Financial Terms of the Transaction
As a part of the transaction, ST Telemedia will become the largest strategic shareholder in Equinix with a contribution of the i-STT business and a cash investment of $30 million through the acquisition of Equinix's convertible debt. Approximately $23 million of the proceeds from this transaction will go towards retiring more than $130 million of Equinix's debt, including approximately 80% of the company's outstanding Senior Notes and a further reduction of the credit facility. The remainder will be used to fund on-going operations. As a part of this transaction, the company also expects to reset the loan covenants in its credit facility consistent with the anticipated future performance of the new company. The capitalization of the company post-closing and pre-conversion of the ST Telemedia convertible debt and warrants, will be as follows: existing Equinix shareholders will hold approximately 33% of the company; ST Telemedia will hold approximately 28%; former Pihana Pacific stockholders will hold approximately 21%; and the former Senior Noteholders will hold approximately 18% of the outstanding Equinix stock.

Equinix - Press Release

Grazie Paolo, è molto interessante. Rende bene l'idea su come agisce STT.

 

[qquebec]

UBS alza la raccomandazione sul settore acciaio in Europa

UBS upgrades outlook for EU steel sector

UBS maintains a cautious view on EU steel prices and margins, but has upgraded the European sector to neutral from underweight. We believe risks are now more balanced and we now recommend a Neutral view, the bank comments in its European steel sector update obtained by Steel Business Briefing.
According to the report, the steel price should not fall much further because: the price has already fallen quite sharply; steel demand has improved significantly since its 2008-2009 lows and still appears to be rising; steel buyers’ inventories are fairly low in absolute terms; and deliberate capacity closures or plans to idle capacity for more than a month or two can be positive leading indicators to bring the steel market's supply and demand back in balance.

 

[Zorba]

Petrol AD Reports Consolidated Earnings Results for the First Quarter Ended March 31, 2010
06/8/2010
Petrol AD reported consolidated earnings results for the first quarter ended March 31, 2010. For the quarter, the company reported revenue was BGL 238.621 million against BGL 203.965 million for the same period last year. Loss before taxes was BGL 3.48 million against BGL 5.99 million for the same period last year. Net loss was BGL 3.446 million against BGL 5.463 million for the same period last year. Net loss attributable to the owners of the parent company was BGL 3.42 million or BGL 0.05 loss per share against BGL 5.466 million or BGL 0.09 loss per share for the same period last year. Net cash provided by operating activities was BGL 3.753 million against net cash used in operating activities of BGL 7.742 million for the same period last year. Payments for acquisition of property, plant and equipment and intangible assets were BGL 2.949 million against BGL 1.267 million for the same period last year. Adjusted EBITDA was BGL 7.566 million against BGL 1.72 million for the same period last year.

 

[qquebec]

Questi proprio non li capisco: perdono soldi a palate, ma decidono comunque di aprire altri 90 negozi nelle stazioni di servizio entro il 2010.

Bulgaria's Petrol AD 2009 profits have shrunk by over 96%, the company's newly published annual report has revealed. The fuel distributor recorded a profit of BGN 7,082 M during the last financial year, compared with BGN 203,203 M in 2008. This represents a drop of 96,51% for the year.
The company had managed to reduce its operating costs over the year from BGN BGN 755,536 M to 515,105 M. This saving did not compensate for a sharp drop in revenue, which fell some 47%, from BGN 981,558 in 2008, to BGN 523,096, the report showed. The company has stated that, by the end of 2010, it plans to open 90 new retail outlets throughout Bulgaria. This expansion will, according to Petrol AD management, meet their strategic plan to increase sales and market share. They also intend to consolidate a number of smaller independent competitors by the conclusion of franchise or dealer agreements, or through direct acquisition. The company’s management team claim that a significant growth in profitability will be achieved in the medium term by adopting the policy. Petrol AD currently has some 470 gas stations, with 80 fuel depots around the country, and three port terminals on the Black Sea coast.

 

[qquebec]

Wind Hellas verso il default

Wind Hellas Downgraded, May Restructure, S&P Says
June 22 (Bloomberg) -- Wind Hellas Telecommunications SA may restructure its capital “in the immediate term” after announcing a drop-off in liquidity, Standard & Poor’s said today when it downgraded the company three steps to CC. “During the next few weeks or months, Wind Hellas could default on its upcoming debt obligations or have to undergo another capital restructuring -- the second in six months,” the ratings company said in a statement. Greece’s third largest mobile phone operator may seek to exchange debt at a discount under a restructuring, which would be “tantamount to a default,” S&P said. The Athens-based company’s 356 million euros ($440 million) of 8.5 percent notes due 2013 were little changed at 5 percent of face value, close to their lowest level of 4 percent on June 16, according to prices HSBC Holdings Plc prices on Bloomberg. S&P estimates that holders of the subordinated notes could lose all of their investment, while owners of senior notes could end up with as little as 30 cents on the euro. Wind Hellas began talks last week with creditors and its shareholder Weather Investment SpA because of a slump in sales and earnings in April and May caused by the government’s austerity measures. The company emerged from bankruptcy seven months ago after renegotiating 3.2 billion euros of debt through the U.K. bankruptcy courts. Weather Investments is the holding company for Egyptian billionaire Naguib Sawiris.

Downgrades
S&P is the last of the major ratings firms to downgrade Wind Hellas. The company’s debt was cut by Fitch Ratings on June 17 to C, one step above default status. Moody’s Investors Service downgraded its assessment last week to Caa3, nine levels below investment grade and three steps from default. Wind Hellas has about 35 million euros in cash and a 17.5 million-euro amortization payment on its revolving credit facility due at the end of the month, S&P said. It also has a 23 million-euro coupon payment on its bonds due July 15. “We believe it may prove challenging for Wind Hellas to honor its roughly 40 million euros of debt obligations falling due within the next month,” S&P said.