Casino - comment

Last night Casino released their opening gambit in the negotiations, proposing a partial equitisation of the Term Loan B and RCF and full equitisation of the Unsecured bonds. See our note for more details. 

Separately, GPA received an unsolicited offer for its 96% stake in Exito from Mr Jamie Gilinski (a Columbian national, reportedly the 2nd richest Colombian) for $836m, lower than the current market price. The offer expires on the 7th of July, and the offer is binding and fully funded. GPA are not in immediate need of the sale, and we don’t expect the offer to be accepted. 

Back at Casino, there may be a (small) glimmer of hope for bondholders to salvage some small recovery. Casino is seeking a waiver from the 2026 EMTN bonds from any potential event of default that will occur when interest payments are suspended during the Conciliation Process. The meeting is due on July 13th.