Boparan - still remaining long

All,

Boparan postponing the refinancing sounds reasonable. The PF adjustments are still very large and in this market Boparan are going to have to sign too expensive bonds to be economical in the long run. By comparison, with another quarter under their belt those adjustments will more than halve and we never envisaged the deal to come so soon. 

The re-profiling of the pension liabilities means that those will have to be counted as pari passu in the future. We are certainly not overwhelmed by the development, but the postponement of cash payments should help the refinancing. 

It is possible that the bonds will drop a little now as some of the short term refi trades may get taken off. But we remain confident that the deal will go through later this year on continued performance only - no further improvement required.

We are therefore holding on to our position in the name at this time.

Wolfgang