russiabond
Il mito, la leggenda.
Clock ticking for Novo Banco LME ahead of August deadline
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.
Clock ticking for Novo Banco LME ahead of August deadline
By Alice Gledhill
LONDON, June 26 (IFR) - Time is running out for the liability management exercise on which the sale of Portugal's Novo Banco hinges, potentially derailing the process ahead of an August deadline.
The market had broadly expected terms for the LME to emerge in June. Designed to generate at least €500m of capital, it is a crucial part of the package agreed with private equity firm Lone Star, which has agreed to buy a 75% stake in the "good bank" carved out of failed Banco Espirito Santo.
Recent media reports said the LME terms have been set and are pending approval by regulators. However, a consortium of bondholders threw a potential spanner in the works in late May, offering to buy the bank themselves.
"I wouldn't underestimate what the bondholders could do to make this situation significantly more complicated," a market source told IFR.
The LME was never going to be straightforward. Billed as voluntary, the issuer must entice bondholders to sign up to an exercise that will impose sufficient losses on them to raise the requisite capital.
The source reckoned 50%-60% of the bonds are in the hands of sophisticated investors, with the remainder held by retail.
"I think it's going to be very difficult to generate €500m of new capital with the current position of the bondholders," he said. "It's going to be difficult for anyone to agree the execution of an LME with only the participation of retail."
The delay in the LME's implementation saw Moody's last Monday extend the review for downgrade on Novo Banco's Caa1 long-term deposit and Caa2 senior debt ratings.
"If the LME fails to succeed, there is an increased risk of a resolution or liquidation for the bank with consequent losses for creditors," the ratings agency said.
TOO LATE?
Details of the bondholders' offer have not been made public, but the source reckoned the terms could represent a better outcome for Novo Banco.
"The bondholders' proposals to own the bank is phenomenally interesting," he said.
ALSO IN INTEL
An investor, however, pointed out that Lone Star may be able to commit more capital down the line if needed. And though the August deadline is fast approaching, there is still time to attempt the LME.
"The issue we have seen with Co-op Bank is that it's maybe better to have only one shareholder with deep pockets and tight management control, compared to a group of distressed bond investors who become part of an equity consortium and don't really put pressure on management in implementing reforms," the investor told IFR.
The Co-operative Group handed control of its banking arm to creditors in 2013 in order to seal a £1.5bn rescue, but has since struggled to return to health. The lender said on Monday that it was close to agreeing a financial rescue package with leading investors that would shore up its capital base.
The European Central Bank declined to comment on developments at Novo Banco. Lone Star and the Resolution Fund did not respond to requests for comment. (Additional reporting by Alex Chambers, editing by Matthew Davies)
By Alice Gledhill
LONDON, June 26 (IFR) - Time is running out for the liability management exercise on which the sale of Portugal's Novo Banco hinges, potentially derailing the process ahead of an August deadline.
The market had broadly expected terms for the LME to emerge in June. Designed to generate at least €500m of capital, it is a crucial part of the package agreed with private equity firm Lone Star, which has agreed to buy a 75% stake in the "good bank" carved out of failed Banco Espirito Santo.
Recent media reports said the LME terms have been set and are pending approval by regulators. However, a consortium of bondholders threw a potential spanner in the works in late May, offering to buy the bank themselves.
"I wouldn't underestimate what the bondholders could do to make this situation significantly more complicated," a market source told IFR.
The LME was never going to be straightforward. Billed as voluntary, the issuer must entice bondholders to sign up to an exercise that will impose sufficient losses on them to raise the requisite capital.
The source reckoned 50%-60% of the bonds are in the hands of sophisticated investors, with the remainder held by retail.
"I think it's going to be very difficult to generate €500m of new capital with the current position of the bondholders," he said. "It's going to be difficult for anyone to agree the execution of an LME with only the participation of retail."
The delay in the LME's implementation saw Moody's last Monday extend the review for downgrade on Novo Banco's Caa1 long-term deposit and Caa2 senior debt ratings.
"If the LME fails to succeed, there is an increased risk of a resolution or liquidation for the bank with consequent losses for creditors," the ratings agency said.
TOO LATE?
Details of the bondholders' offer have not been made public, but the source reckoned the terms could represent a better outcome for Novo Banco.
"The bondholders' proposals to own the bank is phenomenally interesting," he said.
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An investor, however, pointed out that Lone Star may be able to commit more capital down the line if needed. And though the August deadline is fast approaching, there is still time to attempt the LME.
"The issue we have seen with Co-op Bank is that it's maybe better to have only one shareholder with deep pockets and tight management control, compared to a group of distressed bond investors who become part of an equity consortium and don't really put pressure on management in implementing reforms," the investor told IFR.
The Co-operative Group handed control of its banking arm to creditors in 2013 in order to seal a £1.5bn rescue, but has since struggled to return to health. The lender said on Monday that it was close to agreeing a financial rescue package with leading investors that would shore up its capital base.
The European Central Bank declined to comment on developments at Novo Banco. Lone Star and the Resolution Fund did not respond to requests for comment. (Additional reporting by Alex Chambers, editing by Matthew Davies)
russiabond
Il mito, la leggenda.
solovaloreaggiunto
Forumer storico
novo 19 a 81.50 bid
solovaloreaggiunto
Forumer storico
novo 19 81.75 bid
Near
Forumer storico
ma l'estate scorsa non ci dicevamo le stesse cose?
Dandst
Forumer storico
forse sarebbe da incrementareLa 2035 al palo per non dire che scende...
Fra41
Forumer storico
A capirci qualcosa... io dopo banco popular e le venete non mi fido Certo che arrivare a questo punto per mandare tutto a p.uttane sarebbe assurdo ma io non sono così tranquillo come Russia
russiabond
Il mito, la leggenda.
...il gioco è in mano ad altri ...se i fondi decidono di aderire è fatta recovery 72-80
perchè credo tireranno dentro tutti ...
se i fondi NON aderiscono allora c'è la guerra ...avranno un piano B il piano B dei fobdi è quello di prendersi la Banca ...se gliela danno la BCE & C.
io parlo con un pmc di 64 area ...preferisco un adesione massiccia dei fondi e scatto delle CAC un discreto prezzo di recovery area 74 a salire anche 76 ...mi va benissimo e chiuso
si và con i gettoni a guardare altre cose altre realtà...
è tutto colegato al pmc ed alla size se hai dentro il 5% a prezzo 80 o superiore magari ti vien voglia di fare il duro ...forse
se sei all in in leva a me di fare il duro frega un capzo ...con pmc 64 se ci faccio il 20% ...incasso inoltre ho già incassato circa 86 K e cedole per varie 10cine di K euri anche se all'andata ho avuto un loss
i fondi fannno la loro battaglia ...perchè incazzati dalla prima rasatura in bad ...una volta che ottengono un buon prezzo di là spero che si convincano a chiudere di qua ...i fondi decidono per tutti ...se gli manca size se la comprano a mercato
