Cirsa bonds bounce as Blackstone buys back PIK notes

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By Owen Sanderson
28 May 2020

Bonds issued by Spanish gambling company Cirsa have rallied on expectations of support from owner Blackstone, after it disclosed on its investor call that affiliates of the private equity firm had bought €120m of its PIK notes in the market — even though the purchase does nothing to boost the firm’s liquidity profile.

Cirsa issued the €375m six year PIK toggle notes in September last year, funding a dividend payment to Blackstone.

Since the coronavirus hit, though, the company’s gaming halls have been closed and most of its revenue streams have ground to a halt, forcing a sharp change in the ...

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