Investors in the stock market say that they often anticipate future events because of the expectation that something, good or bad, will happen. Sometimes the rumor becomes news. Many other times, no. Now, if those ahead of the future are bond investors, make sure that something will happen safely. In the case of Dia, Both the shareholders and the holders of securities agree with the same conclusion: Fridman is skirting failure only five days after its completion and the company begins to discount a scenario of restructuring with creditor banks.
O Day's shares fell 3.4% on Thursday to 0.58 euros, so that they are 13% below the 0.67 euros offered by the Letterone fund. It is the lowest quote in a month with several investors selling their shares following the CEO's bankruptcy notices, Borja de la Cierva, such as the Fridman team captains Stephan Ducharme. Both agree that the insolvency risk is approaching the Day in the absence of agreement with the creditor banks with the payment of millionaire loans in May.
O sentence is the same: If the acquisition does not move forward, there will be no increase EUR 500 millionA Dia will not have the resources to correct its capital mismatch and obviously will not be able to face the maturities of part of its financial debt. The message went deep on Thursday among some bonus holders, which went on sale. The price of the debt of the supermarket chain experienced on Thursday the biggest fall since November, according to the prices of the three series of senior securities in the amount of 900 million euros.
44% discounts on your bonuses
The question that matures the most Immediate (July 2019, 1.5% coupon) registered a decrease of 5.8%, up 87 points, which means a discount of 13% over its July repayment price. In other words, if Dia can pay in July and return the principal of the bond, it means that the profitability to obtain assumes a gain of more than two digits. Still the more pessimistic put the bonus that expires in April 2021 (1% coupon) or the ending in April 2023 (coupon of 0.85%), What if they collapsed 8% and 10%, respectively, until you place the discount at 33% and 44% in relation to the price at par.
O absence of competing offers – this Thursday, April 25, the deadline to present them or raise the price of Fridman's offer expired,yes how to plant the creditor banks when it comes to reaching an agreement with Letterone – another of the conditions for a capital increase of 500 million – caused investors to stampede, as had not been seen since the October 2018 accident of the Day. The multinational then issued a "profit notice", reformulated its accounts and detected accounting irregularities on the part of the management team.
It was in October that a downward spiral of bond prices began, fueled by reductions in the financial risk rating of the major agencies. Day suffered until the degradation of its consecutive qualification between October and December by the agencies S & P and Moody's, which transported the BBB- and Baa3 (suitable for investment or above the title of junk) up to CCC + and Caa1, ratings incompatible with investment, high risk and that point to a probable risk of default on their debts. This is the new scenario that they handle a lot actions such as titles.