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Refi

03 June 2019 by jbchevrel

The cinema operator Vue International Bidco Plc (VUECIN) saw its 5-year senior CDS tighten by c160bp, making it the best performer in iTraxx CrossOver, following the release of the new financing package of term loans. A total of c£800m financing was announced via Bidco entity. That is more than what is needed to fully refinance VUECIN existing (incl. £362m 2020s outst). The increasing of maturities and the reducing of cost of debt will give VUECIN more flexibility, going forward. As per company communique, this package will include c£550m-equivalent EUR Senior Secured Term Loan B, c£98m EUR Senior Secured Term Loan B and £165m 2nd Lien PIK Notes provided by OMERS, a current VUECIN shareholder. Not much impact on the short bond (July 2020s) which are up just 10c on the day. At close to 300bp, the 5y is at its tightest level YTD, and this move unwinds the Dec 6th refi-linked bearish move on the name. Elsewhere, we saw Europe outperform in this session, after opening close to the wides.