Seat Pagine Gialle SpA (PG)’s bonds plunged to a record low after Italy’s largest directory publisher said it can’t pay debt coming due this year and sought protection from its creditors.
Seat Pagine’s 550 million euros ($746 million) of 10.5 percent senior bonds due January 2017 and redeemable by the company next year fell 9.5 cents, or 29 percent, to 23.5 cents as of 12:22 p.m. in London, according to Bloomberg generic prices. The notes have lost more than 60 percent of their value in the past three weeks.
Standard & Poor’s cut the ratings of the Turin-based company for the second time in a week on Feb. 1 after it missed a coupon payment. S&P downgraded the publisher to “Selective Default” from CC and said it may downgrade again, to D, if other financial obligations are missed.
Seat Pagine restructured its debt in September, swapping 1.3 billion euros of junior-ranking bonds into shares and refinancing 686 million euros of loans.
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