Rallye’s debt buyback has hardly convinced investors

Posted on Feb 14, 2019 2021 at 14:58Updated Feb 14, 2019 2021 at 15:08

The bet was bold and the markets gave it a rather cold reception. On January 23, Rallye proposed to its creditors to buy back part of its unsecured debt, with a spectacular discount of up to 87.5%, in line with the plunge in securities in recent months. With the implementation of the 2019 safeguard plan, Rallye’s debt has lost most of its value on the markets. For the controlling holding company of the Casino group, it was “ provide a certain degree of liquidity to holders of unsecured debt and [de permettre à] the company to improve its debt profile.

But while the holding was ready to devote 75 million euros to this operation, which with the application of the highest discount would have enabled it to get hold of 600 million of debt in face value. It only received 39.1 million offers, just over half of the target. It also had to offer the lowest discount, which still amounts to 80%.

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