Obbligazioni societarie La saga della famiglia Espírito Santo: cosa succederà alle obbligazioni BES ed ESFG?
- Creatore Discussione Rottweiler
- Data di Inizio
russiabond
Il mito, la leggenda.
giugno 2017
05. giugno 2017
Lu (Se 23)
Lunedì di Pentecoste
† 1
Piazze tedesche Austria oggi festivo
05. giugno 2017
Lu (Se 23)
Lunedì di Pentecoste
† 1
Piazze tedesche Austria oggi festivo
angy2008
Forumer storico
Pimco non fà parte dei fondi che proponevano l'acquisto nei giorni scorsi?
Sig. Ernesto
Vivace Impertinenza
"Road to Scuttle"
solovaloreaggiunto
Forumer storico
Pacific Investment Management Co., or Pimco, and other bondholders in troubled Portuguese lender Novo Banco SA are threatening to derail a sale of the bank to private equity group Lone Star Funds, saying they would rather buy it themselves.
Sig. Ernesto
Vivace Impertinenza
tenete,
Pimco Threatens to Scuttle Novo Banco Sale
Lone Star had agreed to inject €1 billion into Novo Banco for a 75% stake
Without Lone Star’s equity, Novo Banco could ultimately be forced into liquidation. Photo: rafael marchante/Reuters
By
Margot Patrick and
Patricia Kowsmann
Updated June 5, 2017 6:21 a.m. ET
0 COMMENTS
Pacific Investment Management Co., or Pimco, and other bondholders in troubled Portuguese lender Novo Banco SA are threatening to derail a sale of the bank to private equity group Lone Star Funds, saying they would rather buy it themselves.
Lone Star agreed in March to inject €1 billion ($1.11 billion) for a 75% stake in Novo Banco, with the current owner, a Bank of Portugal-run bank resolution fund keeping 25%. A condition of the sale is that bondholders must stump up another €500 million by swapping €3 billion in senior bonds for new notes, creating a pad for the new equity Lone Star is putting in and for the resolution fund’s remaining stake.
That is unacceptable to Pimco and other members of a bondholder group. They wrote a letter to the Portuguese central bank late last month with their own offer: skip the bond swap and discuss selling the bank to them instead.
It is yet another twist in a tumultuous chapter for Portugal that began when Banco Espírito Santo collapsed in August 2014. “Good bank” Novo Banco was carved out of the failed lender with a €4.9 billion lifeline from the resolution fund. But it quickly burned through much of the capital as Portugal’s weakened economy produced more bad loans.
Without Lone Star’s equity, Novo Banco could ultimately be forced into liquidation. The European Commission had set an August deadline for the sale and, without a buyer, Novo Banco faced potential liquidation.
Lone Star, Novo Banco and the Bank of Portugal declined to comment.
For Portugal, there is more at stake than the sale of the country’s third-largest bank. Pimco, an investing behemoth with $1.5 trillion under management, is already at odds with the country over the central bank’s 2015 decision to transfer €2 billion in bonds held by Pimco, BlackRock Inc. and others out of the bank.
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The Portuguese government is in talks with the two fund giants and others to settle the conflict over the 2015 bond transfer, people familiar with the matter said. The letter could be a tactic to pressure Lisbon to cut a better deal, the people said, although not all of the bondholders in the group offering to buy Novo Banco hold the transferred bonds, according to people familiar with the group’s composition.
The letter-writing bondholder group, represented by advisory firm PJT Partners , believe the resolution fund should lose its equity before the bondholders are forced to accept losses, the people familiar with the effort said. The group wants access to Novo Banco’s books so that it can conduct due diligence before making a formal offer, the people said.
Pimco isn’t in the habit of buying banks outright, but it is a common feature of bank and company restructurings for bondholders to become the owners. That way, they keep the upside as a company returns to health.
The resolution fund is operated by the Bank of Portugal and is supposed to be funded by the system’s banks. It, however, was close to empty when Novo Banco was created, forcing the state to inject most of the capital into the lender. That means that any losses suffered by the fund could ultimately cost taxpayers.
There are two big obstacles, though, for bondholders considering trying to buy Novo Banco. First, the Bank of Portugal banned any investor suing it from participating in the sale process, cutting out swaths of interested parties. Second, Lone Star has an exclusive agreement that means the central bank can’t hold talks with anyone else.
Members of the bondholder group, who are bracing for the terms of the planned bond swap that could come as soon as this month, say they won’t back down.
“Portugal has a strong incentive to have a better relationship with the world’s largest bondholders,” said one. “We won’t take a haircut. Not a penny.”
Write to Margot Patrick at [email protected] and Patricia Kowsmann at [email protected]
Pimco Threatens to Scuttle Novo Banco Sale
Lone Star had agreed to inject €1 billion into Novo Banco for a 75% stake
Without Lone Star’s equity, Novo Banco could ultimately be forced into liquidation. Photo: rafael marchante/Reuters
By
Margot Patrick and
Patricia Kowsmann
Updated June 5, 2017 6:21 a.m. ET
0 COMMENTS
Pacific Investment Management Co., or Pimco, and other bondholders in troubled Portuguese lender Novo Banco SA are threatening to derail a sale of the bank to private equity group Lone Star Funds, saying they would rather buy it themselves.
Lone Star agreed in March to inject €1 billion ($1.11 billion) for a 75% stake in Novo Banco, with the current owner, a Bank of Portugal-run bank resolution fund keeping 25%. A condition of the sale is that bondholders must stump up another €500 million by swapping €3 billion in senior bonds for new notes, creating a pad for the new equity Lone Star is putting in and for the resolution fund’s remaining stake.
That is unacceptable to Pimco and other members of a bondholder group. They wrote a letter to the Portuguese central bank late last month with their own offer: skip the bond swap and discuss selling the bank to them instead.
It is yet another twist in a tumultuous chapter for Portugal that began when Banco Espírito Santo collapsed in August 2014. “Good bank” Novo Banco was carved out of the failed lender with a €4.9 billion lifeline from the resolution fund. But it quickly burned through much of the capital as Portugal’s weakened economy produced more bad loans.
Without Lone Star’s equity, Novo Banco could ultimately be forced into liquidation. The European Commission had set an August deadline for the sale and, without a buyer, Novo Banco faced potential liquidation.
Lone Star, Novo Banco and the Bank of Portugal declined to comment.
For Portugal, there is more at stake than the sale of the country’s third-largest bank. Pimco, an investing behemoth with $1.5 trillion under management, is already at odds with the country over the central bank’s 2015 decision to transfer €2 billion in bonds held by Pimco, BlackRock Inc. and others out of the bank.
RELATED ARTICLES
- Portugal Sells Novo Banco to Lone Star (March 31)
- Can a Mystery Bidder Spoil Portugal’s Novo Banco Sale? (March 10)
- Portugal’s Central Bank Backs Novo Banco Cash Injection (Dec. 30, 2015
- Behind the Collapse of Portugal’s Espírito Santo Empire (Aug. 12, 2014)
The Portuguese government is in talks with the two fund giants and others to settle the conflict over the 2015 bond transfer, people familiar with the matter said. The letter could be a tactic to pressure Lisbon to cut a better deal, the people said, although not all of the bondholders in the group offering to buy Novo Banco hold the transferred bonds, according to people familiar with the group’s composition.
The letter-writing bondholder group, represented by advisory firm PJT Partners , believe the resolution fund should lose its equity before the bondholders are forced to accept losses, the people familiar with the effort said. The group wants access to Novo Banco’s books so that it can conduct due diligence before making a formal offer, the people said.
Pimco isn’t in the habit of buying banks outright, but it is a common feature of bank and company restructurings for bondholders to become the owners. That way, they keep the upside as a company returns to health.
The resolution fund is operated by the Bank of Portugal and is supposed to be funded by the system’s banks. It, however, was close to empty when Novo Banco was created, forcing the state to inject most of the capital into the lender. That means that any losses suffered by the fund could ultimately cost taxpayers.
There are two big obstacles, though, for bondholders considering trying to buy Novo Banco. First, the Bank of Portugal banned any investor suing it from participating in the sale process, cutting out swaths of interested parties. Second, Lone Star has an exclusive agreement that means the central bank can’t hold talks with anyone else.
Members of the bondholder group, who are bracing for the terms of the planned bond swap that could come as soon as this month, say they won’t back down.
“Portugal has a strong incentive to have a better relationship with the world’s largest bondholders,” said one. “We won’t take a haircut. Not a penny.”
Write to Margot Patrick at [email protected] and Patricia Kowsmann at [email protected]
Leberna
Forumer storico
Bhe le quotazioni dei bond secondo me ne dovrebbero beneficiare..significa che in ogni caso qualcuno sto ces.. se lo incolla..e soprattutto non è così cesso come si vuol far credere..
A questo punto anche un road to 80 per la 43 mi pare il minimo...
