OHLA - comment
The latest news on OHLA is a step in the right direction, although there is still work to get a deal finalised. The Spanish export insurance company proposes to replace most of the bank guarantees in return for the banks releasing €100m (of the €140m) collateral they hold. The banks are more reluctant to support OHLA than we expected, and the collateral release will still leave them with cash collateral of around 25% of their much-reduced guarantee liability. CESCE lines price in line with bank lines but with no cash collateral, should that price not be higher with a knock-on impact on margins? Bondholders are holding out for a higher coupon (12% vs 10% now offered), and we expect a deal with the PIK portion increased as part of a maturity extension to 2030. There is little trust between OHLA’s creditors and its equity holders, but self-preservation will push everyone towards a deal.