Isda provides further detail on roofmaker auction

Isda has confirmed that an auction will take place for European loan-only CDS transactions referencing Lafarge Roofing. Today’s announcement also provides a bit more information on the trigger for the credit event (see Dealers vote for auction on roofing company loan CDS).

Dealers have determined that a restructuring credit event has occurred in respect of the referenced credit agreement, based on publicly available information. This credit agreement of €2.07 billion senior secured credit facilities (ELCDS-Lafarge) was entered into by Financiere Gaillon 7, LR (the credit known as Lafarge Roofing). ELCDS transactions refer to reference obligations rather than reference entities, as is the case in regular CDS and North American LCDS.

The auction will be administered by Markit and Creditex.