Codere Refinancing of Bonds ‘Highly Uncertain’: Spread Research

By Irene García Pérez
(Bloomberg) — Spanish gaming company has two bonds worth
about EU813m ($903 million) maturing in November 2021, but a
decline in performance in Mexico, Argentina and Italy make the
refinancing of the notes “highly uncertain”, Spread Research
analyst Joan Sehim wrote in a note to clients on Monday.
* “Management did not give any precise guidance for Ebitda in
2020, which is unusual at this moment of the year,” the analyst
* Only stated expectation was an increase in Ebitda year on
year, which seems very optimistic according to Spread Research
** Analyst sees Ebitda of EU242m in 2020, down 3% year-on-year,
although the outcome could be “materially worse” in the event
the coronavirus spreads across Europe
* Codere’s EU500m notes due November 2021 dropped 7 cents on the
euro to 87 cents in the past four trading days, the lowest since
Oct. 30; bonds were unchanged on Tuesday
* NOTE: Codere FY Earnings Fall 11.9%, Dragged by Argentina;
Bonds Drop