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Highway To Hell

30 January 2018 by lberuti

ASTIM’s ( Astaldi Spa ) - the Italian company which mainly designs, develops and operates public infrastructure and large scale civil engineering works – issues started in earnest last November when the company announced a 200-million euro share sale to bolster its finances after writing down about €230mln on its exposure to Venezuela. Today, investors were asked by a few investment banks if they would be interested in buying part of a €500mln revolving credit facility granted by international lenders. Distress debt traders found the news particularly worrying as it comes right after an independent business review, which Ernst and Young are said to have concluded in recent days after being brought in in place of KPMG, which are not having a good few weeks after the Carillion debacle. ASTIM’s 5-year risk premium was pushed 399bps wider at 2426bps – you have to pay 39.5cts upfront and 500bps running to protect €1 of ASTIM debt against default -