Cengage Learning LCDS brings final price of 74 at credit auction

By Susanna Moon

Chicago, Aug. 6 - Cengage Learning Acquisitions, Inc.'s credit derivative trades brought a final price of 74 at an auction administered by Creditex and Markit on Tuesday.

Due to a zero net open interest, there was no subsequent bidding period to the Cengage auction, according to a notice. As a result, the inside market midpoint value is the final price.

Cengage will be removed from the Markit LCDX series 12 through 20 after the company's credit auction is completed, according to a Markit notice on Aug. 5.

New versions of the affected Markit LCDX series were being issued, with an annex date of Aug. 6, Markit previously said.

Settlement for the LCDS auction was slated for Aug. 13.

The International Swaps and Derivatives Association, Inc. said on July 10 that its Americas credit derivatives determinations committee determined that a bankruptcy credit event occurred for Cengage on July 9.

Cengage, a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets, filed for bankruptcy on July 2. The Chapter 11 case number is 13-44106.

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