OHLA - comment

We are staying our course on OHL. We imagine the consent solicitation is going to get done - if not now then in a month - as PJT are private and the solicitation did not contain any further information or incentive. Being public ourselves, we don’t like to sit on the outside and while we take comfort from 1) the 6-month maturity of the bond, 2) from the Spanish jurisdiction now also requiring equitable treatment of a creditor class and 3) from the fact that the adhoc group still only presents 1/3 of the bonds and for now also remains public. Even so, we are keeping an eye on that Condition 13a (Spanish Law for easier modifications and waivers). Together that means we would be declining the consent - even if likely futile. As Aengus has written before, the problem here is not that no capital is available in the equity market but that the Amodios are trying to avoid dilution. Now is the time for bondholders to place their demands. The bonds are value-covered and now yield 16% to March, but a more likely scenario is an extension with a low teens coupon on a mere 75m equity injection by Jose Elías. Just why we need to delay a coupon for that is beyond us and if anyone really wanted our favourable vote we find they could give us more information first.