Euro Disney Jumps On New Terms

Euro Disney's ¤48.3 million Phase B bank debt climbed almost 10 points and traded in the 94 1/2-96 1/2 range up from the 86 1/2-89 1/2 context. The jump occurred after Euro Disney reached agreement with hedge funds and banks to restructure ¤2.4 billion ($2.95 billion) of debt in order to avoid filing for bankruptcy.

Euro Disney had reached agreement on a plan in June with lenders holding ¤450 million of senior debt. These includedCaisse Des Dépôts & Consignations, BNP Paribas, Calyon, Natexis Banques Populaire, Allied Irish Bank and Bayerische Hypo-Und Vereinsbank. But distressed investors that had taken positions in the name were unhappy with the proposed terms. Reportedly, these hedge funds included Cerberus Capital Management,Black Diamond andStrategic Value Partners.

To avoid bankruptcy, Euro Disney juiced up the coupon on the senior debt by 200 basis points more than previously proposed to EURIBOR plus 3%. Call protection of 103, 102 and 101 was also installed for the next three years. A Euro Disney spokeswoman did not return calls.