EM LATAM CREDIT: Telefonica Moviles Chile: Parent Sale Confirmation – Neutra
Oct-10 14:00
(MOVCHI; NR/BBneg/BB-neg)
- Not much news here. MOVCHI 31s were last quoted 62.15, down ¼ point today and unchanged since June 30th but down 15 points YTD. We think the Chile mobile assets make sense for Mexico based America Movil and the fixed line assets could fill a need for Entel of Chile. In the fiercely competitive Chilean telecom market, consolidation could be beneficial.
- We see restrictions in the covenants of the indenture that protect bond holders in the case of a sale of assets that should allow for the assumption of payment of principal and interest on debt should a transaction be consummated.
- Telefonica announced earlier this year its intent to divest most of its Latin America holdings and reportedly hired Citigroup about 5 months ago to arrange the sale of Telefonica Chile.
- Finally, America Movil and Entel confirmed a few days ago that they signed a non-binding agreement to explore buying some or all of the company.
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MNI:US JUL WHOLESALE INV 0.1%; SALES 1.4%
Sep-10 14:00
- MNI:US JUL WHOLESALE INV 0.1%; SALES 1.4%
MNI: US JUL WHOLESALE INVENTORIES 0.1%
Sep-10 14:00
- MNI: US JUL WHOLESALE INVENTORIES 0.1%
US TSY OPTIONS: Jump in 5- & 10Y Options Post-Data
Sep-10 13:57
Underlying futures bobbing around post-data highs while projected rate cuts rebound from early morning (*) levels: Sep'25 at -28.4bp (-27.2bp), Oct'25 at -48.2bp (-45.9bp), Dec'25 at -70.4bp (-67.5bp), Jan'26 at -83.2bp (-79.9bp).
- 4,100 FVV5 110.5/111 call spds
- over 4,500 FVX5 110 calls, 31 ref 109-29 to -28.75
- 10,000 TYX5 111/112 put spds, 8 ref 113-15
- Block, 10,000 TYX5 113/114 call spds vs. 111.5/113 put spds 0.0 net
- 10,000 TYV5 113.5/TYX5 112.5 put spds, 2 net/Nov over
- 2,000 USV5 112/113/115 1x1x2 broken put trees
