Codere SA is reportedly battling for its life and exploring new investment opportunities to refinance its longstanding corporate debt bonds worth € 900 million.
Spanish business news outlet El Confidencial announced that Bank of America has been approved by the Spanish gambling group to pursue renegotiations with bondholders for a further two-year extension on debt maturity terms which are due to expire by 2021.
Bank of America will have to convince Codere debt holders to retain their assets within the firm, as bond prices have fallen to between € 0.90 and € 0.35.
Closing March trade, Moody’s downgraded Codere bonds to a ‘CAA1 rating,’ the solvency category used to define a ‘high-risk junk bond’ that carries investors ‘negative outlook.
The gambling firm is currently the most bet against business listed on the Bolsa Madrid Exchange, further hampering Codere’s refinancing choices.
Codere’s long- debt of € 900 million has been largely accrued as part of the company’s 2015 restructuring led by US private equity companies, which saw the legacy retailer escape bankruptcy.
Mirroring trends in the market, COVID-19 disturbances saw Codere briefly shut down its entire land- operation in Spain, Argentina, Italy, Colombia, Mexico and Uruguay.
Drastic measures also resulted in Codere Governance putting 1,000 of its Spanish workers under the ERTE payroll security system of the government.