CWN +0.31%: the company announced it would not be redeeming the Sub Notes II (CWNHB) at the first call date in a month’s time. Crown spoke to a number of concerns around redeeming or rolling the security including regulatory risk with ongoing investigations in multiple states. Holders of the notes will continue to receive 4% +the 3 month BBSW, though the notes will no longer receive any equity credit, i.e. the full $630m will be counted as debt by the credit rating agencies. The move has its pros and cons – we will touch on these more in Wednesday’s Portfolio Report. The CWNHBs traded +0.1% higher today.
MM is neutral CWN
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