S&P gives Codere notes CCC+

S&P said it assigned preliminary CCC+ ratings to Codere Luxembourg 2 Sarl and its €128.9 million of new money super senior notes. The notes’ preliminary recovery rating is 3.

The issuer will become the new parent of the Codere group through a restructuring agreement. Last month, Codere SA started its consent solicitation and exchange offer with its noteholders, for the implementation of the restructuring agreed with an ad hoc committee formed by most of them in April. If the pact is approved, the bondholders would get a 95% equity stake with Codere SA shareholders splitting the remaining 5%.

“We have affirmed the SD issuer credit rating on Codere SA and the D rating on its super senior notes. Concurrently, we have downgraded to D from CC Codere's senior notes, reflecting our expectation that the proposed debt restructuring (composed of a debt for equity swap and debt write off) expected to occur around Nov. 5, is a virtual certainty,” S&P said in a press release.

“We expect Codere SA to be liquidated over the months following the transaction.”

The outlook is negative.

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