Braskem Idesa Bonds Jump on Extension of Covenant Breach Waver

Published 30 June 2023, 14:05:58.796 GMT

(Bloomberg) -- Bonds of Braskem Idesa due 2029 are up 3 cents on the dollar to 68 cents on Friday after the Mexico-based petrochemicals maker obtained a waiver extension until March 2024 for the breach of a covenant on its term loan.

* Notes due 2032 gain over 2 cents to 65 cents on the dollar

* The extension was already the base-case scenario, but the BAKIDE curve had been pressured by market jitters as the announcement took place at “the eleventh hour,” Lucror Analytics analyst Filipe Botelho wrote in a note

By Vinicius Andrade and Maria Elena Vizcaino