Chilean Casino-Owner Enjoy Working to Avoid Breach of Covenant

Enjoy SA (ENJOY), a Santiago-based casino owner, ended last year with a higher debt ratio than allowed for by the covenants on its bonds and has 90 working days to get back in line, the company said in its earnings statement.

Should Enjoy not come back into line with its covenants within that time, the bondholders have the right to force accelerated payment of the 110 billion peso ($228 million) debt, the company said in a statement published on its website.

The covenants on the bonds obliged Enjoy to keep its level of net debt at less than five times its earnings before interest, tax, depreciation and amortization at the end of 2011. As of Dec. 31 the ratio was at 5.66 times. Enjoy expects to meet its obligation in the time remaining, it said.

The company needs to reduce that ratio to four times the measure of earnings beginning 2013, according to the statement, which was published Feb. 9. Newspaper Diario Financiero reported on the covenants today.

Telephone calls to the company’s corporate finance team, led by Rodrigo Larrain, went unanswered today.

The yield on Enjoy’s bonds due June 2015 fell four basis points, or 0.04 percentage point, to 8.65 percent as of 11:21 a.m. in Santiago, according to data from the Santiago stock exchange. The security last traded on Feb. 8.

Enjoy owns and runs seven casinos in Chile and operates one in Argentina.

To contact the reporter on this story: Sebastian Boyd in Santiago at

To contact the editor responsible for this story: David Papadopoulos at

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