Rallye with belt and suspenders
All,cWhile we are updating our Casino model, the Rallye agreement with Fimalac is good news for bondholders.
Rallye had previously entered into a PIK agreement with Daniel Kretinsky, but than cannot be drawn before midd 2021.
The current derivative arrangements are subject to an LTV covenant, which could force Rallye to make payment instantly or lose the pledged 8.7% of shares in Casino.
So the additional facility from his old friend Marc Ladreit de Lacharrière covers him / us through year-end, from where Naouri has to take a view of 6 months whether to draw this one or Kretinsky’s.
Wolfgang