/raid1/www/Hosts/bankrupt/TCRLA_Public/180723.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, July 23, 2018, Vol. 19, No. 144
Headlines
A R G E N T I N A
ARGENTINA: IMF Expresses Support for Economic Policy
ARGENTINA: Explains Economic Recovery Plan
B R A Z I L
ANASTASIA INTERMEDIATE: Fitch Assigns 'BB-' IDR, Outlook Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Central Bank Receives US$1.3BB From Bond
P U E R T O R I C O
PICOTEO DE TAPAS: Case Summary & 10 Unsecured Creditors
PUERTO RICO: House Committee Wants Leadership to Talk About PREPA
PUERTO RICO: Utility Directors Resign as Gov. Demands CEO Pay Cut
T R I N I D A D & T O B A G O
CARONI 1975: Ex-Workers March for Promised Lands
V E N E Z U E L A
VENEZUELA: Science and Tech Workers Demand Pay Hikes
X X X X X X X X X
* BOND PRICING: For the Week From July 16 to July 20, 2018
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A R G E N T I N A
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ARGENTINA: IMF Expresses Support for Economic Policy
----------------------------------------------------
Ms. Christine Lagarde, Managing Director of the International
Monetary Fund, met with Argentina's President Mauricio Macri,
Finance Minister Nicolas Dujovne and Central Bank Governor Luis
Caputo in the context of the Group of 20 Finance Ministers and
Central Bank Governors meeting in Buenos Aires. Ms. Lagarde issued
the following statement:
"I had the pleasure to meet President Mauricio Macri, Finance
Minister Nicolas Dujovne and Central Bank Governor Luis Caputo
yesterday and today. The meetings were an opportunity to discuss
recent economic developments in the world and in Argentina and
take stock of the authorities' economic reform plans.
"The Argentine authorities are implementing a decisive reform plan
that has the support of the international community and is backed
by the IMF, through a Stand-By Arrangement. This plan aims to
strengthen Argentina's economy and bolster confidence by
addressing long standing vulnerabilities, protect the most
vulnerable, improve gender equity and lay the foundation for
inclusive and sustainable growth going forward.
"The government has shown strong commitment to implement their
plan so far. The Central Bank of Argentina has put in place
measures that helped reduce financial volatility and improve
transparency, progress is ongoing regarding the fiscal measures
for next year and social spending remains above the targets set by
the authorities.
"These and other measures will help economic performance going
forward. We expect growth to stabilize in the last quarter of 2018
and see a gradual recovery in 2019 and 2020, as confidence grows
and the cost of capital falls, along with inflation, while exports
pick up.
"Steadfast implementation of the authorities' plan will stabilize
the economy, help lower inflation, improve confidence and lay the
foundation for sustainable and inclusive growth."
As reported in the Troubled Company Reporter-Latin America on
June 7, 2018, S&P Global Ratings affirmed on June 4, 2018, its
'B+' long-term sovereign credit ratings on the Republic of
Argentina. The outlook on the long-term ratings remains stable.
S&P also affirmed its short-term sovereign credit ratings on
Argentina at 'B', its 'raAA' national-scale ratings, and its
transfer and convertibility assessment of 'BB-'.
S&P said the stable outlook incorporates its expectation that
the Macri Administration will implement additional austerity-based
economic measures in the coming six months to contain and soon
reverse the deterioration in inflation dynamics, reduce the fiscal
deficit, and stabilize the economy. S&P expects the government's
decision to enter into an agreement with the International
Monetary Fund (IMF) will help sustain investor confidence and
maintain its access to capital market funding for its large fiscal
deficits. S&P expects that effective implementation of corrective
economic policies, including revised budgetary targets for this
year and next, will set the stage for better policy predictability
and continuity over the next several years.
Fitch Ratings affirmed on May 8, 2018, Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and revised
the Outlook to Stable from Positive.
On December 4, 2017, Moody's Investors Service upgraded the
Government of Argentina's local and foreign currency issuer and
senior unsecured ratings to B2 from B3. The senior unsecured
shelves were upgraded to (P)B2 from (P)B3. The outlook on the
ratings is stable. At the same time, Argentina's short-term
rating was affirmed at Not Prime (NP). The senior unsecured
ratings for unrestructured debt were affirmed at Ca and the
unrestructured senior unsecured shelf affirmed at (P)Ca.
As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30-day grace
period on a US$539 million interest payment. Earlier that day,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago. On March 30, 2016, Argentina's Congress
passed a bill that will allow the government to repay holders of
debt that the South American country defaulted on in 2001,
including a group of litigating hedge funds that won judgments
in a New York court. The bill passed by a vote of 54-16.
ARGENTINA: Explains Economic Recovery Plan
------------------------------------------
In the following interview, Roberto Cardarelli, IMF mission chief
for Argentina, discusses the details of the economic plan.
Why did Argentina decide to come to the IMF?
Argentina decided to come to the IMF in mid-May, as a series of
shocks combined with economic vulnerabilities led to a shift in
market sentiment which resulted into severe pressures on the peso,
a higher sovereign risk premium, and short-term liquidity risks.
Investors began selling their assets in pesos and the government
was having trouble paying its bills for the rest of the year.
What does the new economic plan seek to achieve?
Argentina's economic plan aims to restore financial markets'
confidence and progressively lessen the strains on the country's
ability to pay its bills. To do so, the government has committed
to an economic program that reduces borrowing, puts public debt on
a firm downward path, and strengthens the credibility of the
central bank's inflation targeting framework.
At the same time, the plan intends to protect society's most
vulnerable from the inevitable negative effects that cuts in some
kinds of spending will have on the economy. Ultimately, the
objective of the program is to pave the way for stronger, more
sustainable and equitable growth that can benefit all
Argentineans.
One key objective is to lower the fiscal deficit. How will the
government accomplish this?
Yes, the government's goal is to achieve a primary balance -- that
is, a balance of revenue and spending at the federal level that
does not include interest payments -- by 2020.
This is one year earlier than originally announced by the
government and it is based on measures that aim to reduce the
federal government's spending. These measures include, for
example, further cuts in energy subsidies, a lower wage bill, and
a reduction of transfers to both provinces and state-owned
enterprises.
There are also a few tax measures -- in particular, the suspension
of tax cuts that had been previously announced -- but they account
for just a small part of the fiscal rebalancing.
How will the government protect social spending under the plan?
The government proposed a few measures that would help the most
vulnerable.
First, the program establishes a minimum amount of federal
government spending on a few well-targeted and highly effective
social assistance programs, such as the conditional cash transfers
that reach most of the poor and vulnerable.
Second, if the economy worsens, the government can increase
spending by up to 0.2 percent of GDP (or AR$30 billion) per
calendar year, if they think they have room in the budget.
Third, the government can decide to take measures to protect
people who are insufficiently covered by the existing social
safety net.
What will be the focus of monetary policy, and why is it important
for the country to maintain a flexible exchange rate?
The government is committed to an inflation targeting regime with
freely floating exchange rates. It also announced a few changes
that would strengthen the credibility of the monetary policy
framework. In particular, the central bank has adopted a new, more
credible path of inflation targets (for example, the inflation
target for end-2019 moved from 10 to 17 percent).
The government also announced a series of measures that will
reinforce the central bank's independence, including the immediate
stop of direct and indirect money transfers to the Treasury and
the intention to send to Congress a new charter for the bank that
would strengthen the autonomy of its operations.
We believe this plan has a good chance of gradually bringing down
inflation. And it will allow the exchange rate to adjust based on
investors' confidence as well as act as a shock absorber, as its
fluctuations will prevent external shocks from taking a large toll
on economic activity.
The plan calls for Argentina's central bank to be independent.
Why?
One of the reasons investors lost confidence in Argentina's
economy is the perceived loss of central bank independence that
occurred early in 2018, when the central bank cut interest rates.
This happened at a time when inflation expectations were well
above the new inflation targets, which the central bank had
increased just a few weeks earlier. These decisions triggered a
rapid depreciation of the peso, and called into doubt the central
bank's independence and its commitment to lower inflation. An
essential part of the new plan is to guarantee the central bank's
financial and operational autonomy.
When do you expect Argentina's economy to get back on track?
We think that after a solid first quarter, Argentina will
experience negative growth in both the second and third quarter of
2018.
The country has been in a years-long drought that has hurt
agricultural production, and the crisis over the last few weeks
has hurt inflation and investors' confidence.
We expect growth to stabilize in the last quarter of 2018. We
anticipate the economy will begin a gradual recovery in 2019 and
2020, as confidence grows and the cost of capital falls, along
with inflation, while exports pick up, thanks to solid growth in
Argentina's main trading partners (Brazil, the United States, and
China).
How would you say Argentina is different today from 15 years ago?
Has the IMF changed as well?
Yes, conditions are quite different for both of us. Argentina's
economy is less vulnerable than before the recession at the
beginning of the 2000s. The exchange rate regime is a big change.
It is now floating, not fixed, so it's working as a shock
absorber. Banks and the private sector also operate without money
borrowed in foreign currency, so their balance sheets are not at
risk from a depreciation of the peso. On top of these key dynamic
changes, the government has launched a series of business-friendly
measures that have helped the economy register solid growth in the
last 7 quarters.
The IMF has changed as well. Our support for Argentina's economic
plan puts more emphasis on the need to strengthen the social
safety net, and includes measures to increase women's
participation in the labor force. Doing so is not only a moral
imperative, it's also essential to ensure that any plan to
stabilize the economy is accepted by everyone, which means it
stands a stronger chance to succeed.
As reported in the Troubled Company Reporter-Latin America on
June 7, 2018, S&P Global Ratings affirmed on June 4, 2018, its
'B+' long-term sovereign credit ratings on the Republic of
Argentina. The outlook on the long-term ratings remains stable.
S&P also affirmed its short-term sovereign credit ratings on
Argentina at 'B', its 'raAA' national-scale ratings, and its
transfer and convertibility assessment of 'BB-'.
S&P said the stable outlook incorporates its expectation that
the Macri Administration will implement additional austerity-based
economic measures in the coming six months to contain and soon
reverse the deterioration in inflation dynamics, reduce the fiscal
deficit, and stabilize the economy. S&P expects the government's
decision to enter into an agreement with the International
Monetary Fund (IMF) will help sustain investor confidence and
maintain its access to capital market funding for its large fiscal
deficits. S&P expects that effective implementation of corrective
economic policies, including revised budgetary targets for this
year and next, will set the stage for better policy predictability
and continuity over the next several years.
Fitch Ratings affirmed on May 8, 2018, Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and revised
the Outlook to Stable from Positive.
On December 4, 2017, Moody's Investors Service upgraded the
Government of Argentina's local and foreign currency issuer and
senior unsecured ratings to B2 from B3. The senior unsecured
shelves were upgraded to (P)B2 from (P)B3. The outlook on the
ratings is stable. At the same time, Argentina's short-term
rating was affirmed at Not Prime (NP). The senior unsecured
ratings for unrestructured debt were affirmed at Ca and the
unrestructured senior unsecured shelf affirmed at (P)Ca.
As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30-day grace
period on a US$539 million interest payment. Earlier that day,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago. On March 30, 2016, Argentina's Congress
passed a bill that will allow the government to repay holders of
debt that the South American country defaulted on in 2001,
including a group of litigating hedge funds that won judgments
in a New York court. The bill passed by a vote of 54-16.
===========
B R A Z I L
===========
ANASTASIA INTERMEDIATE: Fitch Assigns 'BB-' IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has assigned a first-time 'BB-' Long-Term Issuer
Default Rating (IDR) to Anastasia Intermediate Holdings, LLC
(Anastasia Beverly Hills Inc., or ABH) and Anastasia Parent, LLC.
The Rating Outlook is Stable.
ABH's ratings reflect the company's strong track record of growth
and customer connections, good financial profile including
above-average EBITDA margin and positive FCF, and leverage of
mid-3x following the proposed debt-financed dividend, which Fitch
projects would trend towards the high 2x over the next two to
three years. The rating also considers the company's narrow
product and brand profile, recent explosive growth that could
reverse course, and risk that continued beauty industry market
share shifts could weaken ABH's projected growth through the risk
of new entrants or existing players regaining share.
ABH is a prestige cosmetics brand, primarily focused in the U.S.,
with particular strength in brows, eye shadows, and lipsticks. The
company has benefitted from growth in specialty beauty retail and
effective use of the burgeoning social media platform to expand
brand awareness and affinity. Revenue and EBITDA growth has been
substantial in recent years with $180 million of EBITDA in 2017.
Fitch expects the company can sustain 10% revenue growth annually
over the next few years through new product introductions and
increased distribution domestically and internationally. Risk to
the rating include sales deceleration to the low to mid-single
digit level, due to unsuccessful execution of the company's
strategies around product and market introduction, emergence of
new competing brands, the stemming of declines by established
companies with large market shares or the reduction in
distribution from a key customer.
Following a history of limited debt, the company is proposing a
$650 million term loan. Proceeds, in addition to proceeds from a
recent minority equity investment by TPG Capital (reportedly for
around $700 million), will be used to pay the founding family a
dividend.
KEY RATING DRIVERS
Impressive Growth Trajectory
ABH has built an enviable track record of growth through expanding
points of distribution, product introductions, and savvy use of
emerging marketing vehicles. From her industry origins as an
eyebrow specialist, founder Anastasia Soare saw a product gap in
the cosmetics industry and introduced her first brow-focused line
in 2000. The company built a market presence through celebrity
endorsements, magazine product placements, and an aggressive focus
on customer connections and product quality and innovation. Over
time, the company expanded its assortment to include eye shadows,
lipsticks, brushes and bronzers amongst other cosmetics products.
Supporting the business model are positive characteristics of the
cosmetics category, which has reliably grown in the 3%-5% range
(closer to high-single digits for prestige cosmetics), shown
resistance to recessionary pullbacks, and exhibits limited price
promotion and a strong margin profile for brand leaders.
Underscoring ABH's unique go-to market philosophy has been a
tutorial approach, offering customers advice (through videos
posted online) on optimal product usage and application. This
philosophy led the company's decision to be an early adopter of
the Instagram platform, where ABH can share videos, interact with
customers and expand its reach. ABH's social platform has
approximately 18 million Instagram followers and relationships
with key social media influencers who use ABH products in their
photos and videos. ABH's social platform has been a key source of
establishing and maintaining close customer connections without an
extensive market budget; in fact, ABH spends significantly less
than its peers on marketing as a percent of sales compared to
sizable peers like Revlon Inc., The Estee Lauder Companies Inc.
and Coty Inc., which spend between 20%-30% of revenue on
marketing.
The company has expanded its retail reach with partners such as
growing specialty players Sephora (owned by LVMH Moet Hennessy
Louis Vuitton) and Ulta Beauty, and department stores Nordstrom,
Inc. (BBB+/Stable) and Macy's, Inc. (BBB/Negative). ABH has become
a sought-after brand for retailers and is a top-performer across
key retail accounts. The company's brands are sold in around 2,600
stores in North America and over 1,000 internationally. Products
are sold online on its own website, Amazon.com, Inc. (A+/Stable)
and the e-commerce channel of many of its retail partners.
ABH's successful expansion is evidenced by its topline trajectory
with an approximately 64% revenue CAGR from 2014 to 2017. While
growth has slowed somewhat in recent years (from over 100% in 2014
and 2015 to 17% in 2017) due in part to growing scale, Fitch
believes ABH should be able to track somewhat above the industry's
expected 3%-5% growth rate over the next few years, expanding
around 10% annually through 2020.
Strong Financial Profile
ABH's strong financial profile extends beyond its impressive
revenue growth. While the cosmetics category benefits from strong
gross margins, ABH's EBITDA margin well exceeds peers, which are
in the 20%-30% range. Fitch believes the company's outperformance
to peers is largely due to minimal marketing expense but may also
relate to less corporate infrastructure, including backoffice
functions like merchandising and inventory planning. ABH plans to
increase growth investments in new products, geographies, and
owned e-commerce, and Fitch therefore expects EBITDA margins to
moderate somewhat but continue to trend well above the industry
average over the next two to three years.
ABH generates ample cash flow, largely due to good EBITDA
generation with limited leakage such as no interest expense
historically. The company also outsources much of its supply chain
and with limited backoffice infrastructure has limited capital
expenditures. As such, cash flow after estimated owner
distributions for cash taxes but before estimated discretionary
owner distributions, has trended between 10% and 20% of revenue.
Despite the addition of interest expense following the proposed
debt issuance, Fitch expects FCF to improve on EBITDA growth and
neutral working capital. While FCF has historically been used for
owner distributions, ABH could direct some cash flow toward debt
reduction beyond what would be mandated by its excess cash flow
sweep under its new term loan.
Growth Avenues Present Risk and Opportunity
Given its broad exposure in the U.S. retail channel, ABH has
identified international expansion and e-commerce as key growth
opportunities. ABH also believes it can grow sales through new
product and category introductions over time. Fitch projects ABH
can grow its revenue base around 12% in 2018 and around 10%
thereafter.
The company believes international expansion to be an opportunity
given its product assortment is conducive for customers with a
diverse range of skin/hair tones, and based on its existing
customer reach through social media. The company has recently
entered several new markets with strong initial customer
acceptance.
To grow market share internationally, ABH would need to
successfully challenge large incumbent brands as it has in the
U.S., while in some markets ABH would need to change customer
habits around makeup regimens to promote product usage. ABH will
also need to select partners, such as Sephora (which has around
1,500 stores internationally), that can appropriately showcase the
brand and support ABH's social media efforts to educate consumers
about its products. Fitch believes ABH can leverage its social
media platform to quickly ramp in new geographies with the right
retail partner. As a result, Fitch's base case assumes a 25% CAGR
in international revenue.
ABH's ecommerce penetration from its own site is lower than
Euromonitor's estimate of 12% ecommerce penetration of U.S. color
cosmetics. Online penetration of the industry is somewhat below
the approximate 20% retail average (excluding low-online
categories like auto and grocery) due to the sensory and try-on
nature of the category. Fitch estimates a significant portion of
online cosmetics sales follow an in-person experience of the
brand/product.
Given ABH's lower penetration and strong social media following,
the company believes it has an opportunity to drive sales on its
owned site. The company plans to ramp efforts in digital
marketing, including search engine optimization, display adds, and
affiliates.
ABH will also embark upon a site redesign, adding features and
customer services to its offering. The company also plans to use
its website as an avenue through which to introduce new products
and offer an assortment not available at third party retailers.
While ABH's owned ecommerce penetration is below the industry
average, Fitch estimates ABH's overall online penetration is much
higher, including sales generated on websites of key customers
like Sephora and Ulta and aforementioned international sites.
Given its overall strong online penetration, ABH's ability to
drive incremental sales from its owned ecommerce website could be
limited or may cannibalize sales from other websites and channels.
As such, Fitch projects an e-commerce CAGR for ABH to be 8%, close
to Fitch's projection for growth in its North American wholesale
business. Increasing penetration of direct sales should be margin
accretive to ABH by eliminating margin leakage to retail partners.
The risk, however, is alienating retailer relationships, which
Fitch believes are key to ABH given its customer concentration
with key accounts, a sensory-focused category, and ABH's below-
average marketing spend.
Finally, ABH plans to continue expanding its product suite beyond
its original brow-focused assortment. Despite recent category
introductions in lip and face, Fitch believes ABH 's product
portfolio to be less diverse than industry leaders, given a third
of its sales continues to be in brow products. Consequently, ABH
could increase sales to existing customers through further
penetrating categories such as skin care, foundations and powders.
Fitch believes the company can continue to leverage its brand
reach with new products but will need to maintain brand and
product integrity as it expands. Further, while ABH was somewhat
of a pioneer in the brow category, entrenched competitors exist
across much of ABH's product opportunity set and could be harder
to penetrate as ABH would need to drive share away from existing
players.
Exposure to Dynamic Industry with Accelerating Share Shifts
The color cosmetics industry has fundamentally positive
characteristics, including recession resistance, high margins, and
historically limited irrational price competition. Recent years,
however, have seen the industry - and some of its most venerable
brands - disrupted by new marketing and retail channels. The
traditional model of marketing cosmetics through magazine and TV
ads, and selling through department store counters, has markedly
changed.
The introduction of social media, combined with declines in
magazine and network television consumption, has changed marketing
philosophies across the industry. Consumers are building brand
awareness and affinity, and product knowledge, through preferred
online sites and social influencers. ABH pioneered the use of
social media to offer product tutorials and directly interact with
customers on product options and optimal usage. The low cost of
social media relative to traditional advertising channels have
allowed smaller upstart brands to quickly build a presence and
customer following online. Celebrities such as Kylie Jenner (Kylie
Cosmetics) and Rihanna (Fenty Beauty) are using their social
platforms to introduce new lines and products.
Simultaneously, consumer shopping habits have altered cosmetics
purchasing trends. Declines in department store traffic have been
a partial cause in the rise of the specialty retail channel in
cosmetics, including Sephora and Ulta as prominent players. Unlike
department stores with limited brand-sponsored counters, the
specialty players offer far greater options and a brand-discovery
model to generate customer excitement and repeat visits. Prestige
brands traditionally sold at department store brands, many of
which were or have been resistant to growth in the specialty
channel, have seen share loss to upstart brands which are featured
in and promoted by these growing retailers.
Finally, broader trends around health and wellness have been felt
in cosmetics, with brands increasingly employing and advertising
natural and organic ingredients, chemical-free compounds, and
earth friendly packaging. Retailers like drug stores have shifted
their cosmetic portfolios to emphasize this trend, reallocating
shelf space and promotional focus.
All of these trends have led to market share shifts within the
beauty industry. New brands have seen rapid sales ramps through
social media exposure and shelf space wins at Ulta/Sephora/drug
retailers. Some established brands which rely on traditional
retail and marketing channels have been unable to shift their
strategies commensurate with these trends. Shifting market share
has led to M&A activity as larger companies seek to improve their
portfolio's growth potential. For example, in the last few years
Estee Lauder purchased upstart brands Becca and Too Faced, while
Unilever N.V./Unilever PLC (A+/Stable) bought Sundial and Dollar
Shave Club, Coty bought Younique Cosmetics and Edgewell Personal
Care Company bought the Jack Black brand.
Fitch expects the retail and marketing landscape will continue to
evolve and impact industry share. Smaller brands like ABH may
continue to benefit from increased importance of social media and
growth in the specialty cosmetics channel. Conversely, larger
brands have deployed capital and intensified efforts to stem
market
share declines and could pose challenges for further market share
gains by younger brands, if strategies are successfully
implemented. Finally, consumer shopping and brand interaction
habits could sharply change again, disrupting current norms which
brands like ABH have enjoyed.
Reasonable Leverage Profile with Pathway to Debt Reduction
ABH has operated with essentially no debt since inception. The
company has agreed to sell a minority equity stake to TPG Capital
and is issuing $650 million in term loans; together these proceeds
will provide the company founders a cash dividend. Pro forma for
the debt issuance, adjusted leverage is 3.6x on 2017 EBITDA.
Fitch anticipates ABH's growth trajectory will continue, although
sales growth could moderate to around the 10% range from 53% and
17% in 2016 and 2017, respectively. Fitch expects EBITDA margins
to moderate as ABH invests in e-commerce and international growth.
EBITDA is projected to grow 5% to 8% annually from around $180
million in 2017 to around $220 million over the next 24 to 36
months. Fitch expects FCF (after cash tax distributions but before
any discretionary cash distributions) to trend around 50% higher
than estimated 2017 results on higher EBITDA and lower working
capital swings, mitigated somewhat by the addition of interest
expense.
The term loan has a 1% amortization and an ECF sweep with
step-downs at various leverage levels. Fitch assumes ABH would be
required to reduce its term loan by approximately $18 million to
$20 million annually in 2019/2020 assuming ECF sweep of 25%. Given
EBITDA growth and modest debt reduction, Fitch expects leverage to
decline from the mid-3x on a pro forma basis to the high-2.0x
range over the next three years.
DERIVATION SUMMARY
ABH's 'BB-'/Stable rating reflects the company's strong track
record of growth and customer connections, good financial profile
including above-average EBITDA margin and positive FCF, and
leverage of mid-3x following the proposed debt-financed owner
dividend which Fitch projects would trend towards the high 2x over
the next two to three years. The rating also considers the
company's narrow product and brand profile, recent explosive
growth that could reverse course, and risk that continued beauty
industry market share shifts could weaken ABH's projected growth
through the risk of new entrants or existing players re-gaining
share.
Avon Products, Inc.'s 'B+' rating reflects its sizable scale as a
leading direct-selling beauty company with $5.7 billion revenue in
2017 and its well-recognized brand in the beauty industry.
However, its operating results have been on a declining trajectory
in recent years as the company faces challenges from its direct-
selling model and emerging market exposure. The Negative Outlook
reflects the company's declining EBITDA trend, due to its
challenged business model and exposure to weak markets such as
Brazil and Russia.
L Brands' 'BB+' rating reflects the company's dominant position in
intimate apparel through its Victoria's Secret brand and a strong
position in personal care and home products through the Bath &
Body Works Brand. L Brands' good track record of growth and
industry leading margins are offset by an aggressive shareholder
return policy that has traditionally dictated leverage. The
Negative Outlook reflects Fitch's concern that negative store
traffic trends at Victoria's Secret could be indicative of brand
challenges that extend beyond recent strategic changes and that
these challenges may continue to persist, weakening EBITDA and
elevating leverage above 4x.
Levi Strauss & Co.'s 'BB' rating reflects its strong brand, market
share and operating initiatives, which should collectively drive
low- to mid-single digit annual EBITDA growth over the next 24-36
months. Fitch expects leverage to trend in the low to mid 3x range
(3.2x TTM basis), assuming flat debt levels. The ratings also
recognize the secular challenges in the mid-tier apparel industry,
mitigated somewhat by Levi's geographic diversity, minimal fashion
exposure, and presence across a wide spectrum of distribution
channels. The Positive Outlook reflects the combination of Levi's
improved topline results and completion of its multi-year Global
Productivity Initiative, which could result in Levi adopting a
more articulated financial policy and increase Fitch's confidence
in leverage sustaining near or below current levels.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
-- Fitch expects ABH revenue growth to be around 10% annually.
Fitch expects ABH to continue above-industry growth predicated on
new product introductions, expansion of the specialty beauty
retail channel, and new market entry internationally.
-- EBITDA, which was around $180 million in 2017, is expected to
grow 5% to 8% annually to around $220 million over the next 24 to
36 months. This assumes that ABH adds SG&A to support product and
new market launches as well as growth in its e-commerce channel.
-- Annual FCF, after owner distributions for tax payments, is
forecasted around 50% above recent estimated levels given
continued EBITDA growth, offset by interest expense on the
addition of debt. Fitch expects some term loan repayment related
to required amortization and the company's excess free cash flow
sweep, but FCF could also be used for discretionary owner
distributions as it has in the past.
-- Pro forma for the issuance of $650 million in debt, ABH's
adjusted leverage is approximately 3.6x but could decline to the
high-2x range over the next three years on EBITDA growth and some
debt reduction.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
-- Given ABH's small size, single brand and product category
concentration, and risk that continued beauty industry market
share shifts could weaken ABH's projected growth through the risk
of new entrants or existing players re-gaining share, a positive
rating action is not expected at this time. However, Fitch would
view the following positively:
-- Achievement of approximately $400 million in EBITDA. M&A
could contribute to diversification of ABH's brand and geographic
portfolio.
-- Adjusted leverage sustained near 3.0x, contemplating
potential
M&A to diversify ABH's business.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
-- Sales deceleration to the low to mid single digit level, due
to unsuccessful execution of the company's strategies around
product and market introduction, emergence of new competing
brands,
the stemming of declines by large market share-donating rivals or
the reduction in distribution from a key customer;
-- EBITDA remaining close to or below current levels on
weaker-than-expected topline results or aggressive SG&A
investments;
-- Adjusted leverage remaining in the mid-3.0x range due to
either stagnant EBITDA growth, debt-financed acquisition, or
debt-financed dividends to sponsors and ABH founders.
LIQUIDITY
Adequate Liquidity: Pro forma for the proposed capital structure,
ABH will have access to a $150 million revolving credit facility
maturing 2023, with no borrowings expected at close. At close, the
company's debt would consist of a $650 million Term Loan B due
2025. FCF is expected to continue to be positive annually
following owner distributions for cash taxes given the S-corp
structure. A portion of the FCF is expected to be used for debt
reduction related to required amortization and the company's ECF
sweep, with the remainder used towards further debt reduction or
additional owner distributions.
FULL LIST OF RATING ACTIONS
Fitch has assigned the following ratings:
Anastasia Intermediate Holdings, LLC
-- Long-Term IDR 'BB-'.
Anastasia Parent, LLC
-- Long-Term IDR 'BB-';
-- Senior secured revolving credit facility 'BB+'/'RR1';
-- Senior secured Term Loan B at 'BB+'/'RR1'.
The Rating Outlook is Stable.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Central Bank Receives US$1.3BB From Bond
------------------------------------------------------------
Dominican Today reports that Dominican Republic's Central Bank
said it has received in its accounts abroad the US$1.3 billion
from the bond issued last July 12.
"These resources are available for use by the Dominican Government
within the provisions of the National Budget, and at the same time
will contribute to the increase of foreign currency flows in the
economy," the Central Bank said, according to Dominican Today.
On July 12, the Finance Ministry reported that US$1.3 billion was
placed on the international capital market for a 10-year sovereign
bond at 6%, the report notes.
Finance Minister Donald Guerrero made the announcement and
affirmed that the demand for the Dominican sovereign bond was much
higher than the country's offer, the report relays.
"For this transaction we received orders from around 200 accounts
of international and local investors, for a demand of around
US$3.5 billion; that is, around 2.7 times more than the amount
established," the official said, the report adds.
As reported in the Troubled Company Reporter-Latin America on
July 19, 2018, Fitch Ratings has assigned a 'BB-' rating to
Dominican Republic's USD1.3 billion bonds, maturing July 2028. The
notes have a coupon of 6%. Proceeds from the issuance will be
used for general purposes of the government, including the partial
financing of the 2018 budget.
======================
P U E R T O R I C O
======================
PICOTEO DE TAPAS: Case Summary & 10 Unsecured Creditors
-------------------------------------------------------
Debtor: Picoteo De Tapas Inc.
PO Box 6537
San Juan, PR 00914
Business Description: Picoteo De Tapas Inc. is a corporation
organized under the laws of Puerto
Rico engaged in the restaurant business.
Chapter 11 Petition Date: July 19, 2018
Case No.: 18-04092
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Harold A. Frye Maldonado, Esq.
FRYE MALDONADO LAW FIRM
PO Box 366973
San Juan, PR 00936
Tel: (787) 767-3800
Fax: (800) 204-0744
E-mail: frye.maldonado@gmail.com
Total Assets: $1,556,309
Total Liabilities: $409,539
The petition was signed by Irvin V. Polanco Viera, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 10 unsecured creditors is available for free
at:
http://bankrupt.com/misc/prb18-04092.pdf
PUERTO RICO: House Committee Wants Leadership to Talk About PREPA
-----------------------------------------------------------------
Karen Pierog at Reuters reports that dysfunction at Puerto Rico's
bankrupt electric utility prompted a Congressional oversight
committee to invite the U.S. commonwealth's governor to testify at
a special hearing scheduled this week.
The U.S. House of Representatives' Committee on Natural Resources,
which has oversight of U.S. territories, requested Governor
Ricardo Rossello or a member of his administration appear at the
July 25 hearing to discuss de-politicizing the Puerto Rico
Electric Power Authority (PREPA) and a "credible plan" for its
transformation, according to Reuters.
The report notes that the committee called for the hearing in the
wake of a leadership crisis at the utility that began two weeks
ago.
PREPA is in the process of trying to restructure itself while also
restoring and upgrading the island's electric grid, the report
relays. Its operations were knocked out by Hurricane Maria in
September 2017, exposing years of poor maintenance and management,
the report notes.
In a letter to Mr. Rossello, House committee Chairman Rob Bishop
expressed concern over "the historic mismanagement" of PREPA and
political forces that may hinder its path towards privatization
and becoming a resilient electrical system, the report says.
"Undoubtedly, the recovery and revitalization of Puerto Rico in
the near and long term is unattainable without the
depoliticization of PREPA," the letter said, the report discloses.
PREPA's leadership has been in turmoil following the decision by
current executive director Walter Higgins to step down after four
months on the job, the report says.
His initial named replacement, PREPA board member Rafael Diaz-
Granados, resigned along with four other members of the seven-
member board after the governor criticized a $750,000 annual
salary for Diaz-Granados, the report notes.
Mr. Rossello said Jose Ortiz, a former PREPA board chairman, would
take over the job starting Julu 23, the report adds.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst &
Youngis the Board's financial advisor, and Citigroup Global
Markets Inc. is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
Bondholders' Attorneys
Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet,
Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund
Group, comprised of mutual funds managed by Oppenheimer Funds,
Inc., and the First Puerto Rico Family of Funds, which
collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and
other bonds issued by Puerto Rico and other instrumentalities.
White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch
Alternative Capital LP.
Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.
Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).
Committees
The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth.
The Retiree Committee tapped Jenner & Block LLP and Bennazar,
Garcia & Milian, C.S.P., as its attorneys. The Creditors
Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as
counsel.
PUERTO RICO: Utility Directors Resign as Gov. Demands CEO Pay Cut
-----------------------------------------------------------------
Andrew Scurria, writing for the The Wall Street Journal Pro
Bankruptcy, reported that five members of the board of directors
of Prepa, Puerto Rico's public power monopoly, resigned on July
12, alleging political interference after top lawmakers and the
U.S. territory's governor demanded cuts to a chief executive
compensation package.
According to the report, five board members at the public power
monopoly known as Prepa said in a resignation letter that
"political forces in Puerto Rico" had been meddling in their
decisions and "want to continue to control Prepa." The incoming
CEO was among the board resignations, leaving Prepa leaderless a
day after the current CEO, Walter Higgins, said he was departing,
the report related.
The report further related that the seven-member board came under
fire after offering Mr. Higgins's successor a $750,000 salary,
which top Puerto Rican politicians criticized as excessive for a
bankrupt utility. Gov. Ricardo Rossello said the compensation was
"not proportional" to Prepa's financial condition and called on
the utility's board members to cut the CEO salary or resign, the
report said.
The departures threw Prepa's leadership into disarray as the
utility vies with bondholders in court to drive down a $9 billion
debt load and solicits new investments for a dilapidated power
system, the report noted.
The resignations also marked an unusual rebuke to political
meddling for a public authority often accused of being
politicized, the report further noted. Prepa has long been
plagued by frequent turnover at the top, with politically
connected officials cycling in and out depending on the party in
power, the report added.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst &
Youngis the Board's financial advisor, and Citigroup Global
Markets Inc. is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
Bondholders' Attorneys
Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet,
Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund
Group, comprised of mutual funds managed by Oppenheimer Funds,
Inc., and the First Puerto Rico Family of Funds, which
collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and
other bonds issued by Puerto Rico and other instrumentalities.
White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch
Alternative Capital LP.
Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.
Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).
Committees
The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth.
The Retiree Committee tapped Jenner & Block LLP and Bennazar,
Garcia & Milian, C.S.P., as its attorneys. The Creditors
Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as
counsel.
================================
T R I N I D A D & T O B A G O
================================
CARONI 1975: Ex-Workers March for Promised Lands
------------------------------------------------
Renuka Singh at Trinidad Express reports that a small group of
former Caroni 1975 Ltd marched to the Ministry of Agriculture
seeking a resolution to a 15-year-long wait for promised lands.
The former workers, some now in their 70s, said they can no longer
wait for the Government to fulfil the promises made all those
years ago.
Led by the All Trinidad General Workers Trade Union president
general, Nirvan Maharaj, the group walked from Price Plaza in
Chaguanas to the Ministry of Agriculture, according to Trinidad
Express. Mr. Maharaj carried a file, which included a letter
addressed to Minister of Agriculture Clarence Rambharat requesting
his intervention to deal with the protracted wait for land and
Voluntary Separation of Employment payments.
=================
V E N E Z U E L A
=================
VENEZUELA: Science and Tech Workers Demand Pay Hikes
----------------------------------------------------
Latin American Herald reports that dozens of employees of
Venezuela's Ministry of Higher Education, Science, and Technology
gathered outside of the ministry headquarters in Caracas demanding
pay increases.
The scientists had also demonstrated, partially blocking a roadway
in the outskirts of the capital and holding signs protesting their
"misery wages," as well as warning that science "has no future,"
according to Latin American Herald.
Scores of state telephone company CANTV employees also joined the
protest, the report notes.
"CANTV is in a state of emergency," one of the protesting
employees, Roberto Molina, told Reporters, the report relays.
CANTV -- which provides fixed-line and mobile telephone service,
as well as Internet connection to more than two thirds of the
country's users -- has received an increasingly large number of
complaints regarding malfunctions in its system over the past few
months, the report says.
The report notes that the demonstration is in line with a series
of protests by several of the country's labor unions over the past
four weeks throughout Venezuela.
Media outlets informed about manifestations by health care workers
in as many as five Caracas public hospitals, as well as in four
states, in addition to the "health march" conducted by nurses and
doctors in Maracay, capital of Aragua state, near the capital, the
report relays.
Other demonstrations occurred in the coastal state of Vargas,
sparked by food shortages, while retirees staged a protest for the
second day in a row in response to banks' refusal to pay their
pensions in cash, the report adds.
As reported in the Troubled Company Reporter-Latin America on
June 1, 2018, S&P Global Ratings, on May 29, 2018, removed its
long- and short-term local currency sovereign credit ratings on
Venezuela from CreditWatch with negative implications and affirmed
them at 'CCC- /C'. The outlook on the long-term local currency
rating is negative. At the same time, S&P affirmed its 'SD/D'
long- and short-term foreign currency sovereign credit ratings on
Venezuela. S&P's transfer and convertibility assessment remains at
'CC'.
=================
X X X X X X X X X
=================
* BOND PRICING: For the Week From July 16 to July 20, 2018
----------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
BA-CA Finance Cayman Lt 0.518 62.07 KY EUR
AES Tiete Energia SA 6.7842 1.109 4/15/2024 BR BRL
Argentina Bogar Bonds 2 39.36 2/4/2018 AR ARS
Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD
Automotores Gildemeister 6.75 67 1/15/2023 CL USD
Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD
Automotores Gildemeister 6.75 65.5 1/15/2023 CL USD
CA La Electricidad 8.5 63.664 4/10/2018 VE USD
Caixa Geral De Depositos 1.439 63.167 KY EUR
Caixa Geral De Depositos 1.469 KY EUR
CSN Islands XII Corp 7 68 BR USD
CSN Islands XII Corp 7 66.266 BR USD
Decimo Primer Fideicomiso 6 53.225 10/25/2041 PA USD
Decimo Primer 4.54 43.127 10/25/2041 PA USD
Dolomite Capital 13.217 73.108 12/20/2019 CN ZAR
Enel Americas SA 5.75 56.172 6/15/2022 CL CLP
Gol Linhas Aereas SA 10.75 35.861 2/12/2023 BR USD
Gol Linhas Aereas SA 10.75 35.601 2/12/2023 BR USD
Inversora Electrica 6.5 67.625 9/26/2017 AR USD
Inversora Electrica 6.5 67.625 9/26/2017 AR USD
MIE Holdings Corp 7.5 64.78 4/25/2019 HK USD
MIE Holdings Corp 7.5 64.982 4/25/2019 HK USD
NB Finance Ltd 3.88 61.816 2/7/2035 KY EUR
Noble Holding 7.7 74.433 4/1/2025 KY USD
Noble Holding 5.25 56.279 3/15/2042 KY USD
Noble Holding 8.7 71.881 4/1/2045 KY USD
Noble Holding 6.2 60.129 8/1/2040 KY USD
Noble Holding 6.05 58.38 3/1/2041 KY USD
Odebrecht Finance Ltd 7.5 42.5 KY USD
Odebrecht Finance Ltd 5.125 56.938 6/26/2022 KY USD
Odebrecht Finance Ltd 7 68.053 4/21/2020 KY USD
Odebrecht Finance Ltd 7.125 41.366 6/26/2042 KY USD
Odebrecht Finance Ltd 4.375 40.002 4/25/2025 KY USD
Odebrecht Finance Ltd 5.25 39.211 6/27/2029 KY USD
Odebrecht Finance Ltd 6 44.75 4/5/2023 KY USD
Odebrecht Finance Ltd 5.25 39.018 6/27/2029 KY USD
Odebrecht Finance Ltd 7.5 42.95 KY USD
Odebrecht Finance Ltd 4.375 40.363 4/25/2025 KY USD
Odebrecht Finance Ltd 7.125 41.635 6/26/2042 KY USD
Odebrecht Finance Ltd 6 52.625 4/5/2023 KY USD
Odebrecht Finance Ltd 5.125 55.873 6/26/2022 KY USD
Odebrecht Finance Ltd 7 67.368 4/21/2020 KY USD
Petroleos de Venezuela 8.5 74.5 10/27/2020 VE USD
Petroleos de Venezuela 6 30.458 5/16/2024 VE USD
Petroleos de Venezuela 6 30.517 11/15/2026 VE USD
Petroleos de Venezuela 9.75 35.677 5/17/2035 VE USD
Petroleos de Venezuela 9 39.279 11/17/2021 VE USD
Petroleos de Venezuela 5.375 30.267 4/12/2027 VE USD
Petroleos de Venezuela 8.5 72.5 10/27/2020 VE USD
Petroleos de Venezuela 12.75 45.278 2/17/2022 VE USD
Petroleos de Venezuela 6 30.367 5/16/2024 VE USD
Petroleos de Venezuela 6 30.387 11/15/2026 VE USD
Petroleos de Venezuela 9 39.316 11/17/2021 VE USD
Petroleos de Venezuela 9.75 35.893 5/17/2035 VE USD
Petroleos de Venezuela 6 28.346 10/28/2022 VE USD
Petroleos de Venezuela 5.5 30.123 4/12/2037 VE USD
Petroleos de Venezuela 12.75 45.23 2/17/2022 VE USD
Polarcus Ltd 5.6 75 3/30/2022 AE USD
Provincia del Chubut 4 10/21/2019 AR USD
Siem Offshore Inc 4.04527 69.5 10/30/2020 NO NOK
Siem Offshore 3.75176 65.75 12/28/2021 NO NOK
STB Finance 2.05771 56.243 KY JPY
Sylph Ltd 2.367 64.438 9/25/2036 KY USD
US Capital 1.63611 54.774 12/1/2039 KY USD
US Capital 1.63611 54.774 12/1/2039 KY USD
USJ Acucar 9.875 67 11/9/2019 BR USD
USJ Acucar 9.875 67 11/9/2019 BR USD
Venezuela 13.625 68.25 8/15/2018 VE USD
Venezuela 7.75 44.065 10/13/2019 VE USD
Venezuela 11.95 40.785 8/5/2031 VE USD
Venezuela 12.75 45.19 8/23/2022 VE USD
Venezuela 9.25 39.645 9/15/2027 VE USD
Venezuela 11.75 40.005 10/21/2026 VE USD
Venezuela 9 36.285 5/7/2023 VE USD
Venezuela 9.375 37.69 1/13/2034 VE USD
Venezuela 13.625 72.25 8/15/2018 VE USD
Venezuela 7 34.23 3/31/2038 VE USD
Venezuela 7 59.19 12/1/2018 VE USD
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades. Prices
for actual trades are probably different. Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2018. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
.
* * * End of Transmission * * *