Spread Research in the news


Casino’s Weak Profit Raises Risks for Rallye’s Debt Outlook – Bloomberg

(Bloomberg) -- Rallye SA’s prospects to exit creditor protection suffered a blow after bondholders rejected its plan and French grocer Casino-Guichard Perrachon SA reported weaker- than-expected earnings (…) . A Paris court is set to rule on Rallye’s plan by the end of March. “Even if most bondholders object, it’s still up to the court to decide,” said Anthony Giret, an analyst at Spread Research in Lyon, France. “The alternative is liquidation, and bondholders would be even worse off in that situation.” (…)


European junk-bond New Year sales surge may herald rush to risk – Reuters News

LONDON, Jan 14 (Reuters) - The market for junk-rated European bonds started 2020 with the best sales in the first two weeks in at least a decade, and rising demand for high-yield assets is seen as opening the doors for riskier borrowers. Companies rated sub-investment grade -- or junk in market parlance -- have raised around 3 billion euros ($3.34 billion)since the start of the year. That's the highest level ever for this period and more than double what was sold by this time in 2019, according to Refinitiv IFR data dating back to 2011 (…) The junk surge should continue. Paris-based high-yield specialist Spread Research predicts issuance at around 110 billion euros in 2020, versus 75 billion euros or so last year.


Patrick Drahi a retourné les investisseurs – L’Agefi

Patrick Drahi a retourné les investisseurs Par Olivier Pinaud (L'Agefi) -- En un an, Altice Europe a totalement retourné les investisseurs. Alors que l’opérateur de télécoms avait dû payer en mai 2019 une prime de 800 points de base pour assurer son retour sur le marché obligataire, il a concédé un spread 2,5 fois inférieur, pour des obligations de maturité comparable, lors de l’émission réalisée en milieu de semaine (...) «Altice n’a plus de dette majeure à rembourser avant 2025, ce qui repousse tout risque de liquidité», souligne Jean-René Méduri, analyste crédit chez Spread Research. «Et en cas de besoin, le groupe aurait la capacité de réagir, par exemple en vendant Teads, qui n’est plus aujourd’hui considéré comme stratégique», ajoute-t-il.


OHL Bonds Surge on Positive Read-Across From Aldesa’s Buyout – Bloomberg

(Bloomberg) — Obrascon Huarte Lain SA’s notes rose sharply, extending a rally from last month, as the buyout of peer Aldesa by a Chinese firm fueled investors’ optimism for a capital injection (…) “Although the deal with the Amodio family, when and if it materializes, won’t be as transformative for OHL as the CRCC deal is for Aldesa, it will be positive for OHL,” Marc Pierron, a senior credit analyst at Spread Research, said in a phone interview.


Risk of Default Haunts European Companies Going into 2020 – Bloomberg

Risk of Default Haunts European Companies Going into 2020 Ratings firms forecast rise in missed payments next year Junk yields near two-year low suggest investors are complacent By Fabian Graber European companies, from retailers to advertisers, face more ratings cuts and higher odds of default next year as the tide begins to turn for the lowest-ranked borrowers(…). “There will be opportunistic investors who want to buy paper even if it’s on the riskier side,” said Benjamin Sabahi, chief analyst at Spread Research in Lyon. “Some credits in danger of default could be saved by that.”


European High Yield Prospects 2020

Spread Research team has the pleasure to announce the publication of The European High Yield Prospects 2020. The document analyses the unexpected rally and the favourable technicals in 2019, emphasizing the credit metrics outlook by sector and by rating and the more supportive underlying trends on the macro side as year-end approached.


Rallye’s finalised rescue plan comes with twist – IFR News

Casino bonds have rallied despite a twist in parent company Rallye's draft rescue plan which could rely on large dividend payments from the French retailer in four years' time.


Bloomberg News – Schmolz Wins Vote on Capital Hike as Liwet, Haefner Reach Deal

Schmolz + Bickenbach AG’s shareholders voted in favor of a capital increase to keep the company afloat after the two largest investors ended weeks of feuding over the proposal.


Bloomberg News – Aldesa Takeover Would Trigger Bond Repayment: Spread Research

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.


Bloomberg News – Teva Boosts Debt Sale to Over $2 Billion to Meet Strong Demand

Teva Pharmaceutical Industries Ltd boosted the size of its bond offering to around $2.2 billion to meet a flood of orders, albeit at triple its usual funding costs.


Het Financieele Dagblad – Obligatiebeleggers hebben weinig vertrouwen in valsspelend gokbedrijf

De term jackpot accounting roept niet direct gevoelens van veiligheid en betrouwbaarheid op. Wat zou het betekenen? Is het een lekker bekkende benaming voor speculatieve en opportunistische financiële verantwoording? Nee hoor, het is voor gokbedrijven een regulier zakelijk begrip. Zij moeten in hun cijfers rekening houden met het uitbetalen van grote klappers.


Reuters – Kantar wraps up financing after sweeping changes

Data provider Kantar has allocated a €3.08bn-equivalent leveraged financing backing its buyout by Bain Capital, but only after making wholesale changes after push back from investors on what they saw as an aggressive structure.