British transportation firm Mobico is the subject of a potential takeover deal, but uncertainty reigns among its creditors on whether or not this could lead to a bond redemption and a lucrative payout, according to 9fin sources.
While both of Mobico's 2028 and 2031 bonds carry change of control puts — which implies a redemption at par if a takeover were to occur — there is enough wiggle room in the bond documentation to cast doubt over the outcome, sources said.
Both bonds rallied on Wednesday (21 October) following the non-binding proposal to take over the company at 46p per share in cash by Autobuses de Leon (AdL), a company co-owned by Asterion Industrial Partners and CMC Group, which is Mobico’s largest shareholder and the vehicle owned by Spain's Cosmen family, as 9fin reported. The independent directors said they would be minded to recommend a firm offer on those terms, which value Mobico at around £282m. AdL has until 18 November to announce a firm offer.
Source: 9fin data
A Citi leveraged credit note dated today (22 October) said the put is likely to be triggered at par and that the exemption for holding companies with substantially...
