The International Swaps and Derivatives Association, Inc. (ISDA) today announced that LCDS dealers voted to hold an auction for European loan-only CDS transactions referencing certain facilities entered into pursuant to a Senior Facilities Agreement entered into by the credit known as Yell Limited on 27th April 2006 (and as amended from time to time thereafter).
European loan only CDS (LCDS) transactions refer to Reference Obligations rather than Reference Entities, as is the case in regular CDS and North American LCDS.
The Markit iTraxx LevX Market Makers have determined that a Failure to Pay Credit Event has occurred in respect of the referenced credit agreement, based on publicly available information.
ISDA will facilitate the process by publishing the auction terms on its website http://dc.isda.org/http://dc.isda.org/lcds-management/, in due course. The auction will be administered by Markit and Creditex.
