Abengoa loans quoted at deep discounts in secondary market

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LONDON, July 29 (IFR) - Loan traders are quoting Abengoa's loan facilities at deep discounts in the secondary market, according to a run seen by two investors. The trading run lists a "possible seller" of the Spanish energy firm's 2019 euro loan facility A and 2018 euro loan facility B, both of which pay interest of 300bp over Euribor. The two loans are bid at cash prices of just 72 and 75 respectively.

Abengoa's nine-month zero coupon commercial paper is also on the list, bid at a cash price of 80. These prices mirror the recent sell-off in Abengoa's high-yield bonds that began last week when the firm announced that its convertible and exchangeable bonds will now carry the same guarantees.

Abengoa's EUR375m 7% 2020 bond tumbled seven points from a cash price bid of 88.50 to 81.50 last Friday, according to Tradeweb prices. It is still bid at this level on Wednesday, equating to a yield of more than 12%.

This note was raised in April at 97.954 to yield 7.50%, demonstrating that the company had regained access to bond markets after its accounting practices spooked investors at the end of 2014. But Abengoa's liquidity situation has been called into question by analysts and investors in recent weeks based on activity in its treasury shares.