|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's Range||6.85 - 7.14|
|52 Week Range||2.80 - 12.96|
|Beta (3Y Monthly)||2.38|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 25, 2019|
|Forward Dividend & Yield||1.00 (13.09%)|
|1y Target Est||6.67|
(Bloomberg) -- Anchorage Capital Group is throwing its weight behind Casino Guichard-Perrachon SA as the French retailer seeks to bolster its finances with a 3.5 billion-euros ($3.9 billion) refinancing plan.The New York-based hedge fund placed one of the largest orders for the 750 million euro loan portion of Casino’s refinancing package set to price this week, according to three people familiar with the transaction, who asked not to be named because the matter is private. The supermarket chain received commitments for about half of the total loan amount shortly after the launch last month, the people said.Read more: Casino Gives Guarantees to Lure Banks Into Refinancing PlanStrengthened finances at Casino may spur profits for Anchorage on investments it made in the retailer’s parent Rallye SA. The fund bought up discounted loans to Rallye which is currently being protected by French courts from its creditors, the people said.Representatives for Anchorage in New York and Casino in Paris declined to comment.Support from Anchorage and other funds acting in similar fashion to that of anchor investors in initial public offerings may prove crucial for the success of the loan portion of Casino’s refinancing package, the people said. The French retailer aims to raise 1.5 billion euros of new debt through a term loan alongside a new high-yield bond.Investors will need to give commitments for the financing of the January 2024 loan by Thursday, a person familiar with the matter said last month. Casino is also meeting bond investors for a 750 million-euro secured note which could price as early as Tuesday. Initial price guidance suggests the new notes could yield around 5%-6%, higher than its average 4.3% yield on bond due by 2022.Casino will receive a new 2 billion-euro credit facility from banks if it raises at least 1 billion euros from bonds, loans and new asset disposals by May, it said in a statement on Oct. 22.\--With assistance from Katie Linsell.To contact the reporters on this story: Luca Casiraghi in London at email@example.com;Laura Benitez in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Vivianne Rodrigues at email@example.com, Chris VellacottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Debt-laden French supermarket chain Casino Guichard Perrachon SA was targeted by a European Union cartel probe amid suspicions it colluded with rival Intermarche after the duo teamed up to buy products.Casino and Intermarche’s owner Les Mousquetaires SAS are suspected of coordinating on how they built out their store networks and set pricing, potentially going "beyond the purpose" of a 2014 joint procurement alliance for branded products, the European Commission said in an emailed statement on Monday. The opening of a probe can eventually lead to hefty cartel fines for companies.While regulators don’t forbid joint-buying by retailers, such pacts create "multiple contacts” that may lead them to collude on sales activities, the EU warned. It raided Casino and Intermarche in 2017 and again in May. EU cartel rules don’t allow companies to swap commercially sensitive information.Casino shares rose 0.6% at 12.56 p.m. in Paris trading after falling as much as 3.4% right after the European Commission announcement.Casino said consumers could see for themselves that there was no anti-competitive agreement that affected the prices they paid. It plans to defend itself against the EU probe, a spokesman said in an email statement. An Intermarche representative declined to comment.Casino, which owns the Franprix and Monoprix chains in France, is in talks with banks to extend credit facilities and has agreed to limit future dividend payments as it wrestles with its debt load. As its market share shrinks in France, short sellers have targeted the retailer, saying distressed parent Rallye SA is relying on unreasonably high dividends to survive. Rallye and Casino’s other parent companies obtained creditor protection earlier this year.To contact the reporters on this story: Aoife White in Brussels at firstname.lastname@example.org;Albertina Torsoli in Geneva at email@example.comTo contact the editors responsible for this story: Anthony Aarons at firstname.lastname@example.org, Peter Chapman, Christopher ElserFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Casino Guichard-Perrachon SA announced late Tuesday that it was working on a 3.5 billion-euro ($3.9 billion) refinancing. That should be positive for the owner of France’s famous Monoprix and Franprix chains. But as usual with the sprawling retail group, there is probably more here than meets the eye.At first glance the move looks like sensible balance sheet management. The company has about 500 million euros of bonds maturing in March 2020, and more over the next few years. But the refinancing comes at a price. First of all, it is secured over Casino’s main operating assets in France and Latin America, as well as 1 billion euros of real estate. Then, what’s grabbed the most attention, it’s conditioned on restrictions to future dividend payments to shareholders — the largest of which remains Rallye SA, the investment vehicle of Jean-Charles Naouri. (Naouri is also chairman and chief executive officer of Casino.)The announcement was quickly followed by a long-term debt rating cut by Moody’s Investors Service. Moody’s pointed out that Casino’s overall debt level and interest payments will remain high. It also forecast that Casino’s free cash flow will stay negative despite its best efforts. All of that, plus lingering questions about an August plan to sell an additional 2 billion euros worth of assets in France, makes one wonder whether Casino is being as efficient as it can be managing its debt. The refinancing, if finalized, will secure a new 2 billion-euro credit facility, maturing in October 2023. The company is also aiming to raise new financing of 1.5 billion euros, maturing in 2024. Part of the proceeds will be used to launch a tender offer for its bonds falling due in 2020, 2021 and 2022.This should prevent any imminent liquidity crunch as these notes need to be repaid. Standard & Poor’s took Casino off of watch for possible downgrade, although the outlook remains negative. The company also reaffirmed its target of net debt in France of less than 1.5 billion euros by the end of next year.But why is it still necessary to make sure Casino handles its dividend policy in a sensible manner? Casino had already said that it will not pay a dividend next year, amid fears that it might privilege payouts to Naouri over sorting out its own finances. Under the terms of covenants attached to the refinancing, any future dividend payments will be significantly reduced unless Casino can substantially cut its leverage. Analysts at Sanford C. Bernstein said this implied a 65% cut in any further distributions.Casino has faced criticism for worrying too much about Naouri’s Rallye, which entered a creditor protection program in May. Rallye owns 52% of Casino and is dependent on income from the retailer to cut its own borrowings.At this point, the more that Casino can retain cash to pay down debt or invest in the businesses it’s making its focus, such as e-commerce and its premium and convenience stores, the better ultimately for the company.Naouri already has his hands full working to restructure Rallye’s debt. The prospect of lower dividends payments going forward is bad news.As for Casino, its shares fell as much as 3% in early trading, before recovering. But it has had a good run, recovering to around 44 euros from less than 30 euros in May. The stock has been buoyed by expectations a shareholder shake-up may be in story after Czech billionaire Daniel Kretinsky and his business partner Patrik Tkac bought 4.6% of the French retailer.Still, the refinancing is not done yet. The company has secured 1.6 billion euros of the new 2 billion-euro facility. It’s confident it will get the rest. Even when it does, this won’t be the last spin of the wheel for Casino, especially as its relationship with parent Rallye is reshaped. To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has today downgraded French grocer Casino Guichard-Perrachon SA's (Casino) long-term corporate family rating (CFR) to B2 from B1 and its probability of default rating (PDR) to B2-PD from B1-PD. Moody's has also downgraded Casino's senior unsecured rating to B3 from B1, its senior unsecured MTN program rating to (P)B3 from (P)B1, and the deeply subordinated perpetual bonds' rating to Caa1 from B3. Concurrently, Moody's has assigned a B1 rating to the EUR750 million senior secured term loan B to be issued by Casino and a B1 rating to the EUR750 million senior secured instrument to be issued by Casino's subsidiary Quatrim S.A.S.
French supermarket Casino PA , which is battling investor concerns over the size of its debt, announced on Tuesday it planned to raise 1.5 billion euros through additional bank lending to strengthen its finances. The company said it was in discussions with the banks already financing its existing debt, and said it had already received commitments from 14 French and international lenders for credit of more than 1.6 billion euros. The banks' participation was conditional on the firm raising at least 1 billion euros by May next year, Casino said in a statement.
(Bloomberg Opinion) -- Talk of a tie-up between the French hypermarket stalwart Carrefour SA and its arch-rival Casino Guichard Perrachon SA is back, almost a year after a first stab at exploring the idea ended in a public clash of egos and accusations of dishonesty.Carrefour has again denied an offer is in the works, but shares of the heavily-indebted, heavily-shorted Casino rose 3% on Monday after BFM reported that the grocery chain was thinking about an approach. While there would be obvious advantages for both sides in a deal, navigating the politics around potential job cuts and getting to an agreed price would be tough. A selective sale of assets looks more likely.The time passed since this combination was last considered has at least made a difference in how the big personalities involved – Carrefour boss Alexandre Bompard and Casino’s boss and lead shareholder Jean-Charles Naouri – might think about a move to create France’s biggest supermarket group. In late 2018, Naouri’s debt-laden empire was under attack from short-sellers, Casino shares were trading near 20-year lows and trust was at a minimum. Despite both men’s similar background in France’s elite schools and civil service corps, nothing clicked. Bompard, 24 years Naouri’s junior, reportedly enraged his rival by using the informal “tu” to address him.The pressure on Naouri has intensified since his investment vehicle Rallye SA (through which he controls Casino) entered creditor protection in May, but Casino is in a happier place. Its share price has jumped about 50% in a year, giving it a market value of 5 billion euros ($5.5 billion). It’s no longer being squeezed to help pay off Rallye’s debts and its Monoprix and Franprix stores give it a leading position in Paris. Online delivery deals with Amazon.com Inc. and Ocado Group Plc are another positive.This has left Naouri in a better position than some of his hedge fund antagonists were anticipating. He still controls Casino, even if his shares have been pledged to bank lenders as collateral, and the rebound in the company’s market value is a bonus. Daniel Kretinsky, a Czech billionaire, has backed his strategy by buying a Casino stake. While there’s still a need to sell assets to lighten Rallye’s debt load, Naouri has options to avoid a fire sale.On Carrefour’s side, Bompard would be foolish not to take a serious look at Casino given the intense competition in France’s supermarket sector. Carrefour’s 20% share of the French grocery market is in danger of being chipped away by its closure of hypermarkets and the threat from German discount chains such as Lidl. Adding Casino’s 11% market share would remove a rival and save money. Barclays estimates that the deal could deliver about 1 billion euros in gross synergies, or 1% of the companies’ combined annual revenues.Politics and price are, however, serious hurdles. Casino shares already trade at a premium to the sector, and the company would probably demand a sweetener to give up control. Carrefour has cash after selling a stake in a China business, but a higher value bid would force it to try to extract more savings. That might not be easy with regulators almost certainly demanding store disposals and France’s president Emmanuel Macron desperate to avoid layoffs.Asset sales might be better, or maybe a Brazil-only deal. Carrefour’s and Casino’s combined Brazil entities would have a market share of 54% in that country so some disposals would be necessary. But it might still be a way to free up some cash for Naouri and improve Carrefour’s profit margins in Latin America. Given the barbs being traded between Brazil’s President Jair Bolsonaro and Macron over trade and the environment, this might be one idea on which the leaders can agree.To contact the author of this story: Lionel Laurent at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. He previously worked at Reuters and Forbes.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Fresh from his tilt at the German retailer Metro AG, Daniel Kretinsky is rolling the dice on France’s Casino Guichard-Perrachon SA.The Czech billionaire and his business partner Patrik Tkac have acquired 4.6% of the supermarket chain – owner of Paris’s ubiquitous Monoprix stores – through their Vesa Equity Investment vehicle.Interest in Casino from an outside investor or industry rival is overdue. Despite the problems caused by its complicated ownership structure, the Monoprix and Franprix chains are decent assets. It also has a promising online business, Cdiscount.Rallye SA, the investment vehicle of Jean-Charles Naouri which owns a controlling stake in Casino, entered a creditor protection program in May. So finding an outsider with enough confidence to invest in the grocery company looks like good news on the surface. Casino’s shares rose as much as 6% on Thursday. It’s hard to be confident, though, about whether this will really loosen Naouri’s grip.Kretinsky and Naouri, who’s also Casino’s boss, were effusive in their praise of one another in Thursday’s statement on the stake purchase. And there wasn’t a so-called “standstill agreement” in the release, which means Vesa could theoretically lift its holding, possibly by acquiring part of Rallye’s 52% stake. That might even open the way for it to launch a bid for Casino. After all, that was the route taken by Kretinsky with his failed attempt to buy Metro. He would be in pole position too should Casino decide to sell its Latin American assets.Naouri will propose that Vesa takes a board seat, which ideally would add another powerful voice to make sure the company isn’t just being run to serve the needs of Rallye. Casino has made some reassuring moves in this direction recently, for example by suspending its dividend and using the cash instead to pay down its debt and invest in its operations.The worry is that Kretinsky simply acts as a backer of Naouri, and Casino’s progress in asserting its independence is undone. The Czech investor says he endorses both the supermarket’s management and its strategy. Naouri would no doubt be reluctant to grant a board seat if the new holder wasn’t supportive of him.Already there are some troubling signs about Casino’s rehabilitation. Its recent decision to put another 2 billion euros ($2.2 billion) of assets up for sale is puzzling. That, along with a restructuring of its Latin American assets, suggests the grocer might end up returning cash to Rallye to help the investment vehicle pay down its own net debt of 2.9 billion euros.While Kretinsky could end up as a champion of his fellow minority investors, it would be a mistake to underestimate Naouri and the lengths he will go to keep control. Shareholders will hope that the Czech tycoon proves more independent than his early statements suggest.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Casino Guichard-Perrachon SA and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.