ISDA to publish auction terms for settlement of Sanitec loan-only CDS

By Angela McDaniels

Tacoma, Wash., Jan. 8 - The International Swaps and Derivatives Association, Inc. will launch an auction protocol to facilitate the settlement of loan-only credit default swap trades referencing Sanitec International SA.

ISDA said LCDX dealers voted Thursday to hold an auction for loan-only CDS transactions referencing Sanitec after the company missed interest payments on senior loans used to finance its acquisition by EQT in 2005.

This will be the first European leveraged loan credit event auction, according to an ISDA news release.

The auction will be administered by Markit and Creditex.

The auction terms, including the auction date, will be determined by the LCDX dealers according to the LCDS Auction Rules published on ISDA's web site, www.isda.org.

Sanitec is a Helsinki, Finland-based maker of bathroom ceramics and bath and shower products.

ISDA is based in New York and represents participants in the privately negotiated derivatives industry.

© 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.