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Another Orphan In iTraxx Crossover?

11 September 2017 by lberuti

WINDIM (Wind Acquisition Finance S.A.) has $5.2Bln as well as €5.35Bln of bonds outstanding with maturities ranging between 2019 and 2021. The company has long been rumoured to look at refinancing options. It looks as if it could finally materialise, as the redemption price of their existing notes have been decreasing. Wind, the Italian telecom group should launch a cross border refinancing in October for their whole debt pile. The transaction, which would enable them to extend their maturities, will include a combination of a jumbo bond – targeting institutional investors - and a large loan tranche – targeting bank lenders -. The story triggered a spike in the volume of WINDIM’s CDS traded today as some people anticipated a possible orphaning if the new debt is not issued out of the current special purpose entity, Wind Acquisition Finance SA. The theory gained traction during the session and the CDS eventually closed the session 30bps at 174bps, its tightest level ever.