Aroundtown - comment

Having left its Perps in place, Aroundtown’s Sr. financing now benefits from easier market access, allowing the company to continue rolling its nearest maturities well ahead of time and despite potential downgrade pressures from ratings agencies. In any event, the Sr. bonds should remain well within IG land, not least because asset values are expected to bottom out at the end of the year. The new five-year sr. bond mirrors recent issuance at Grand City and underlines our thesis that the recovery of this structure is more a matter of time than chance.