Hillview Generates Mixed Reviews

Hillview Enterprises’ second attempt to issue a debut bond in the international markets is meeting with mixed reactions among investors. The gaming company is considered a decent revenue generator and some hedge funds like the credit, but accounts who attended roadshow meetings have expressed concerns about its dependence upon the goodwill of the Argentine government and the use of proceeds. According to one investor, 16% of proceeds will go towards dividend payments to shareholders, 30% for loan repayments, 25% for its Carrasco Nobile Casino project, 10% for relocation and 19% for general corporate purposes. Some accounts have declined to participate given the risks and the relatively small size of the issue, while others say they would require a 10%-12% yield to place it in their portfolios. An April 2010 attempt at coming to market with a debut $100m 2016 bond through BCP was shelved. Barclays now has the mandate for a similar $100m 5-year NC3. The gambling company has yet to execute a transaction as it awaits a suitable window following investor meetings that ended Friday.