Codere Finance (Luxembourg) CDS to be settled at auction on Oct. 9

By Susanna Moon

Chicago, Oct. 4 - Codere Finance (Luxembourg) SA's credit derivative trades will be settled at an auction to be held on Oct. 9.

International Swaps and Derivatives Association, Inc. said on Sept. 18 that its EMEA credit derivatives determinations committee determined that a failure-to-pay credit event occurred for Codere Finance.

The committee decided to hold an auction for outstanding CDS transactions.

Sept. 17 due date

Codere said on Sept. 13 that it secured another €35 million from its lenders and that it would make the interest payment on its dollar-denominated notes on Sept. 17.

The company successfully solicited forbearance, waivers and amendments for its dollar notes and euro notes, according to a press release issued at the time.

The company's senior credit facilities lenders agreed to amend its €98,560,385 senior facilities agreement due Jan. 5, 2014 to add a €35 million term loan.

Also, a majority of holders of the €760 million principal amount of 8¼% senior notes due 2015 issued by Codere Finance (Luxembourg) SA agreed to amend the notes indenture to permit the incurrence of additional debt under the loan agreement.

The company pushed back the interest payment due Aug. 15 for the $300 million principal amount of 9¼% senior notes due 2019 issued by Codere Finance (Luxembourg) SA for a month to Sept. 17.

The majority of holders of each of the dollar notes and the euro notes agreed to forebear from accelerating their respective notes as a result of the late interest payment, and they agreed to waive defaults.

Under the loan terms, the new advance facility was to be available in up to three separate draws from Sept. 17 until Dec. 5.

The drawdowns under the advance facility will mature, along with other outstanding drawings under the agreement, on Jan. 5, 2014.

The upfront fee to lenders was €1,069,444, with a commitment fee equal to 3.25%.

Interest on the loans will be the higher of Libor plus 700 basis points or 8% per year.

Codere is a Madrid-based gaming company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.