Fedrigoni - comment

There should be no change to bond pricing on the news this morning that Fedrigoni will again defer its coupon on its €300m holdco bonds. Total deferral amount now is €70m, but those don’t compound in traditional PIK form, but merely accrue and don’t raise the principal amount. This is merely a continuation of the company’s policy so far and should have been expected all around. We continue constructive on Fedrigoni, but are looking for a better entry point.