Auction sets values on British Vita LCDS

Settlement values for loan-only credit default swap (LCDS) trades referencing UK chemical firm British Vita first and second-lien loans were established today at an auction jointly administered by data provider Markit and broker Creditex.

A value of 15.5% was determined on first-lien loans and 2.88% on second-lien loans for the purpose of settling LCDS transactions, meaning protection sellers respectively need to pay 84.5% and 97.125% on LCDSs referencing British Vita.

With no open interest from market participants for physical settlement, the pricing of second-lien loans was determined following the initial bidding period, eliminating the need for a second phase of the auction process.

To avoid breaching the terms of its debt, British Vita agreed a standstill agreement with lenders in December, who gave the company until the end of March to examine its refinancing options.

This was the second cash-settlement auction held for European LCDSs, after settlement values for LCDS trades referencing Helsinki-based bathroom company Sanitec's first and second-lien loans were established on February 5. The auctions are the first to be held on reference obligations included in the Markit iTraxx LevX indexes of European LCDSs.

See also: Auction sets final settlement values on Sanitec LCDS
Auction sets settlement values for LyondellBasell companies

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here