Fri 06/26/2020 12:40 PM
Quotes for Olympic Entertainment’s senior secured €200 million 8.25% 2023 notes have dropped about 3 points to 77/80 since management declined to answer bondholders’ questions on the company’s asset transfer during a call yesterday, June 25.
The gaming company announced on June 18 that it was transferring its online and Lithuanian business outside of the restricted group, as reported
. Shortly after this, an ad hoc bondholder group formed
representing 75% of the bonds and sent a letter to the board of Olympic’s parent company, Odyssey Europe TopCo SARL.
CEO Corey Plummer started the call on June 25 by saying he had received the letter
from Kirkland and Ellis, the bondholders’ legal advisors, and forwarded it to the board of Odyssey Holdco Europe. Plummer said he would not be addressing any of the questions raised in the letter on the call
The bondholders are awaiting a response to a letter sent to the sponsor Novalpina, wherein they are asking for further details behind the rationale of the transaction. Novalpina’s legal counsel, Weil, Gotshal and Manges, has acknowledged
receipt of the letter and will send a substantive response next week, according to a source close.
The group had €30.5 million in cash, of which about €3 million has left the restricted group as a part of the asset transfer. The group implemented cost-cutting measures to reduce its cash burn to about €3 million per month, down from €12 million. All of its casinos are now open after lockdown measures in its various jurisdictions have eased.