Ovako : Ovako Special Redemption Clause

We have had another and closer look to the redemption clauses of the bond documentation. This is an erratum associated with the Credit Morning document that was published today and, contrary to what we wrote earlier, we want to clarify that Ovako can obviously redeem all of the notes outstanding at 102% as stipulated in its documentation. - The company told us that regulatory approval is expected until end-June 2018. This could imply some short-term profit opportunity, depending on the exact redemption date. - The bond price in the morning was 101.6%. Assuming a call by mid-2018 (30 June 2018) at 102%, this would have provided a YTC of 6.4%. At the current mid-price of 102.8% a YTC of 2% is achievable. - We will not change our recommendation at that time given the foreseeable end of the bond coverage. - Special Redemption clause: - - - - - - - - - - >