Codere Coupon Delay Opens $444 Million Credit Swaps Payment Door

Codere SA’s decision to delay a bond coupon payment by two days opened the door for holders of $444 million of credit-default swap contracts to ask for settlement.

The Spanish gaming company said Sept. 13 that it will make a payment on its $300 million of 9.25 percent bonds tomorrow, rather than yesterday when it was due. That enables investors to seek a payout on all outstanding credit-default swaps contracts, according to the rules of the International Swaps & Derivatives Association.

“This will likely be a failure-to-pay credit event for the CDS,” Chris Snow, an analyst at CreditSights Inc., wrote in a note to investors.

There are total of 3,192 contracts covering a net $444 million of Codere’s debt, Depository Trust & Clearing Corp. data show. ISDA’s determinations committee hasn’t been asked to make a ruling, according to the industry group’s website.

The company’s 9.25 percent bonds due February 2019 dropped two cents to 49 cents on the euro, according Bloomberg prices at 9:20 a.m. in London.

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To contact the editor responsible for this story: Paul Armstrong at

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