The cost of insuring Codere SA’s debt against default fell from a record after the company said it’s in advanced talks to renew a senior financing facility.
The upfront cost of insuring 10 million euros of the Madrid-based gaming company’s debt for five years with credit-default swaps fell by 200,000 euros to 3.9 million euros, according to CMA. That’s in addition to 500,000 euros annually and signals a 91 percent probability of default, assuming investors recover 50 percent of their holdings.
Codere said in a regulatory filing that it’s in talks and no final accord has been reached. Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.