m22au's journal

"Supervalu Seeks $2.5 Billion Loan to Refinance, Bonds Drop"
http://www.bloomberg.com/news/2012-...-billion-loan-to-refinance-bonds-drop-1-.html

Supervalu, whose stock sank 49.2 percent to $2.69 in New York today, saw its $1 billion of 8 percent senior unsecured bonds due in May 2016 dropped 11.25 cents today, to 90.25 cents on the dollar at 3:35 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The notes are yielding 11.2 percent, the most since they were sold in April 2009.

May 2016:
http://cxa.gtm.idmanagedsolutions.com/finra/bondcenter/BondDetail.aspx?ID=ODY4NTM2QVQw

Fitch downgrade to CCC:
www.reuters.com/article/2012/07/12/idUSWNA088720120712

"The company's key upcoming maturities are $140 million of notes in 2013, $490 million of notes and the $200 million A/R facility in 2014, and $1 billion of notes in 2016. The company should be able to handle the 2013-2014 maturities with free cash flow, leaving the next big hurdle in May 2016, when the $1 billion in notes comes due. "
 
Elsewhere in France, Alcatel-Lucent dropped to a 52-week low earlier this week, following a profit warning. ALU reports earnings on 26 July.


Alcatel-Lucent Bonds Drop to 1-Month Low as Margin Target Missed
http://www.bloomberg.com/news/2012-...p-to-1-month-low-as-margin-target-missed.html

"Alcatel-Lucent’s 500 million euros ($612 million) of 8.5 percent high-yield bonds due 2016 dropped 3.8 cents to 94.94 cents on the euro as of 3 p.m. in London, the lowest since May 13, data compiled by Bloomberg show. The price drop pushed the yield to a two-month high of 10.3 percent. "

Morningstar debt profile:
http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=alu
 
Nokia Debt Rating Cut to Junk at Fitch
http://www.bloomberg.com/news/2012-07-20/nokia-debt-rating-cut-to-junk-at-fitch.html

"The long-term rating was cut to BB- from BB+ with a negative outlook, Fitch said in a statement today.

"Nokia has debt of 5.2 billion euros ($6.3 billion). Its financial position is strong and liquidity profile “robust,” according to an e-mailed statement from the Espoo, Finland-based company. Fitch’s rating is “unsolicited,” Nokia said. In addition to net cash of 4.2 billion euros at the end of June, Nokia said it has access to a 1.5 billion-euro revolving credit facility without financial covenants until 2016. "

***

My comment: So if it is burning 1 billion EUR a quarter, then it might run out of cash before the 2 April 2014 bond matures.

I'm short NOK calls.
 
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