EUROPE DISTRESSED DAILY: SMCP Shares Rise Ahead of Bond Maturity

SMCP shares gained 10% this week ahead of maturity of exchangeable bonds issued by a subsidiary of controlling shareholder Shandong Ruyi, according to Bloomberg data.

• European TopSoho 250 million euros of bonds due Sept. 21 are indicated at 83.4 cents on the euro
• Shandong Ruyi, which owns ~54% of SMCP and has a “complicated” underlying structure, would like to remain a shareholder but may not find a financial backer to repay the bonds, Jefferies analyst Kathryn Parker says in a phone interview
  • If the exchangeable bond is settled with shares, meaning a transfer of stock to bondholders, a sale longer ...