Phones 4u Bonds Plunge After Vodafone Ends Network Agreement
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Bonds of Phones 4u Ltd. plunged after Vodafone Group Plc said it won’t renew its network agreement with the mobile phone retailer when the contract runs out in February.
The 205 million pounds ($341 million) of 10 percent payment-in-kind notes due April 2019 issued by parent company Phosphorus Holdco Plc slumped 65 pence on the pound to a record 19 pence at 4:35 p.m. in London, according to data compiled by Bloomberg. PIK notes give the issuer the option of paying interest with more debt.