Wind ha avuto il consenso dagli obbligazionisti e si accinge ad emettere un nuovo bond subordinato per ripagare il PIK bond altrimenti in scadenza al 2011.
Emissione consistente, trattandosi di 2,7 mld euro comprensivi anche, come già detto, di 500 mln euro da corrispondere a titolo di dividendo alla capogruppo Weather.
Anche gli obbligazionisti del nuovo bond sono third lien nella graduatoria del debito Wind Telecom, in quanto emessi dalla finanziaria Wind Acquisition finance, sono garantiti su base subordinata da Wind Telecom (dopo dunque il debito senior secured e quello senior unsecured).
Elevato il recovery rating per un subordinato, e Wind è valutato come un going concern, con la data di possibile default, inizialmente stimata al 2011 in caso di eventuale difficoltà a rifinanziare il PIK bond, oggi spostata in avanti ma a prezzo di un incremento del leverage a carico dei titolari dei bond subordinati in quanto con i proventi del nuovo bond, subordinato anch'esso, si paga un bond PIK il cui livello di subordinazione era ancora superiore.
Il risultato è che in caso di default gli obbligazionisti subordinati si trovano a pari livello con quelli del nuovo bond, mentre in precedenza si soddisfacevano prioritariamente rispetto agli obbligazionisti del bond PIK.
Ed attenzione all'avvertenza finale, dove S&P scrive che il recovery rating potrebbe calare drasticamente ove, per necessità, Wind emettesse altri titoli di debito di ranking superiore rispetto a quelli third lien.
Italian Telco Wind Telecomunicazioni's Proposed €2.7 Billion Subordinated Notes Rated 'BB-', With A '4' Recovery Rating
MADRID (Standard & Poor's) June 30, 2009--Standard & Poor's Ratings Services said today that it has assigned its 'BB-' debt rating to the proposed €2.7 billion senior unsecured notes to be issued by Wind Acquisition Finance S.A. and guaranteed on a senior subordinated basis by parent company Wind Telecomunicazioni SpA (Wind; BB-/Stable/--), Italy's second-largest integrated alternative telecoms operator, and by Wind International Services.
At the same time, a recovery rating of '4' was assigned to this debt, indicating Standard & Poor's expectation of average (30%-50%) recovery for creditors in the event of a payment default. We anticipate that the new notes would rank equally with the existing third-lien notes also issued by Wind Acquisition Finance S.A.
The rating assignments follow the existing noteholders' approval of the consent solicitation that Wind launched on June 18, 2009. The rating on the new notes is the same as our corporate credit rating on Wind. It is based on preliminary information and is subject to our satisfactory review of final documentation. In the event of any changes to the amount or terms of the bond, the recovery and issue ratings might be subject to further review.
For further details on the consent solicitation and our corporate credit rating on Wind, please refer to our Research Update "Italian Telecoms Operator Wind Telecomunicazioni Affirmed At 'BB-' After Launch of Consent Solicitation; Outlook Stable," published on June 18, 2009, on RatingsDirect).
RECOVERY ANALYSIS
We have valued the business as a going concern. Given what we see as Wind's good market position in Italy, established network assets, and valuable customer base, we believe that a default would most likely result owing to failure to refinance following operational underperformance and significant leverage and absolute debt.
Before this transaction, we had based our hypothetical default scenario on the assumption that the group would be unable to refinance the PIK debt at parent company WAHF before maturity (2011), triggering a cross default in 2011 with debt located at the Wind level.
If the €2.7 billion note issuance is successful, we believe the most likely hypothetical point of default would be later than in 2011. Consequently, the amount of senior secured debt ranking ahead of the notes upon default would be lower than previously assumed, due to payment of the scheduled amortizations.
This positive rating driver would be more than offset, however, by a higher amount of subordinated debt outstanding at the point of default, although recovery expectations are at the high end of the 30%-50% range.
We consider recovery prospects to reflect both the estimated value available and accessible to the creditors and the likelihood of insolvency proceedings being adversely influenced by Wind's Italian domicile.
Our recovery rating reflects the Wind group's current capital structure and its potential evolution following the existing noteholders' approval of the recent consent solicitation, which allows for the repayment of the PIK
loan through the issuance of €2.7 billion of new debt ranking pari passu with existing subordinated debt.
Any significant change in the group's capital structure could significantly affect recovery prospects, in particular for the third-lien noteholders. We believe that this is pertinent, given the complex financing structure of the Wind and Weather group