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OPA DIA – Bonds (and Shares) Breakdown in Dia for Noise Restructuring – Markets and Stock Exchanges

They are called stock market investors who usually anticipate future events with expectations of something good or bad. Sometimes a reputation becomes a novelty. Many times, no. If those who are ahead of us are bond investors, make sure that something happens safely. In in the case of Zeus, Shareholders and bondholders agree on the same conclusion: Fridman is a plinth failure only five days after its completion and the company will start to reduce the restructuring scenario with the creditor banks.

Dia shares fell on Thursday by 3.4%, to 0.58 euros, so that they are 13% lower than € 0.67 offered by the Letterone Fund. This is the lowest monthly bid when more investors sell their shares following the CEO's bankruptcy declaration In Borja de la Cierva, Spain, like the Fridman team who captains Stephan Ducharme, They both agree that the risk of insolvency threatens Dia, because in May there was no agreement with the creditor banks to pay out the millionaires' loans.

Price development of Dia.

the sentence is the same: If the takeover does not continue, there will be no increase EUR 500 millionDia will not have the necessary resources to correct the equity mismatch and of course will not be able to face the maturity of some of its financial debt. The report appeared on Thursday among some of the bondholders who sold. The supermarket chain debt quotes this week's sharpest decline since November, according to three series prices EUR 900 million.

44% discounts on bonuses

The problem that matures the most Immediate (July 2019, coupon 1.5%) recorded a 5.8% dropup to 87 points, a 13% discount compared to its July amortization cost. In other words, if Dia can pay in July and return the bond principal, which means that the gain that can be obtained assumes more than two digits. Still he put a more pessimistic bonus that expires in April 2021 (coupon 1%) or one that ends in April 2023 (coupon 0.85%) It is collapsed by 8% and 10%until you give a 33% and 44% discount on par.

the absence of competitive offers – This Thursday, April 25, the deadline for submitting them or raising Fridman's bid has expiredYes, as a creditor bank race to reach an agreement with Letterone – another 500 million capital increase – has caused bond investors who have not been t October 2018 crash DiaThe multinational organization then launched a "profit warning", reformulated its accounts, and found accounting irregularities by the management team.

It was in October, when the declining spiral of bond prices began, fueled by the downgrading of the major agencies' financial risks. Dia suffered until the degradation of his subsequent qualification between October and December agencies S & P and Moody, which made DIA communications from BBB- and Baa3 (suitable for investment or over junk bond) up to CCC + and Caa1, ratings incompatible with investments, high risk and point to the probable risk of debt defaults. This is a new scenario that does so much actions like bonds.

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