BTA // We place BTASKZ’18 on a HOLD following today’s BTA announcement that an agreement was made on a non-binding term sheet on restructuring of US$11.2 bn of financial debt with a steering committee

Autor: koelner Datum: Heute, 14:19

Meinung der UBS zum Plan bei BTA: Second restructuring terms agreed Terms better than expected We place BTASKZ’18 on a HOLD following today’s BTA announcement that an agreement was made on a non-binding term sheet on restructuring of US$11.2 bn of financial debt with a steering committee excluding Nomura. Holders of Senior notes, Recovery notes and Original Issue Discount notes are to receive new notes and cash. New notes are to have US$750 mn notional, 5.5% coupon and maturity in 2022. There is currently no clarity as to the ranking of the New notes. Holders of US$2,247 mn senior notes would receive US$957.8 mn in cash plus US$88.6 mn of New notes or 42.6 c/US$ in cash plus 3.95 c/US$ in new notes a total payout of 46.6 c/US$. Holders of US$5,107 mn of recovery notes would receive US$660.2 mn in cash plus US$61.2 mn in new notes or 12.9 c/US$ in cash and 1.2 c/US$ in new notes a total payoff of 14.1 c/US$. The amounts to be repaid to subordinated noteholders are to be determined by the bank and would not change the entitlements of other creditors. Currently the total cash payment is US$1,618 mn or 14.4 c/US$ and total new notes are US$750 mn or 6.7 c/US$ implying a total payoff of 21.1 c/US$ on the US$ 11.2 bn financial debt being restructured.  This might change once the restructuring terms of subordinated notes are announced. Samruk-Kazyna provided a generous support package of conversion of deposits into equity increasing its shareholding of the bank, increasing coupons to 6% from 4% on its bonds which are held by BTA and providing a US$1.592 bn loan at up to 4% p.a. coupon to BTA which is subordinated to new notes. We note that SK’s deposit as of 9M11 IFRS stood at US$2.1 bn We note that total cash payoff of US$1618 mn is US$26 mn above SK loan. This US$26 mn is to be paid to recovery note holders from the existing recovery units collection account. Post restructuring the bank would restore its T1 capital ratio above 10% under BASEL II with profitability to be restored after 2014. The restructuring is expected to be completed by end of FY12. Ich bleibe vorerst mal drin. Die gebotenen 37 erscheinen mir noch zu wenig