By Irene García Pérez

(Bloomberg) — Co.’s EU250m of bonds due April 2021 have a change-of-control covenant that would allow holders of the notes to get paid in full if China Railway’s bid to take majority stake in Spanish co. materializes, Spread Research analyst Marc Pierron writes in a note to clients.

* “Even if China Railway was to put as a precondition to a transaction that bondholders waive the change-of-control provision, the transaction would be still greatly beneficial to the bondholders”: Pierron
* Bonds down 3 cents on the euro on Tuesday to 50 cents: Bloomberg data
** Notes gained 9 cents on Monday after newspaper El Confidencial reported China Railway made a non-binding offer for majority stake
* NOTE: Spanish Builder Aldesa Bonds Jump on Possible China Railway Bid