Ferrexpo Eurobonds - Restructuring to avoid liquidity gaps in 2016

Ferrexpo Eurobonds - Restructuring to avoid liquidity gaps in 2016



25 лютого 2015 года
Конкорд Капитал

Ferrexpo improved the exchange offer conditions on its Eurobonds maturing in 2016 after only 34.2% of bondholders accepted the offer as of Feb. 6. The company increased its outright cash payment to 25% from 20% for those who agree to extend the maturity of the remaining bonds to 2018-19, having shifted the deadline for consent to Feb. 20. We estimate Ferrexpo has to get the support of at least of 45% of bondholders to avoid liquidity gaps in 2016. The issuer is in better financial shape compared other Ukrainian names so far. However, as the outlook for the iron ore market continues to worsen, the safety cushion gets thinner. Ferrexpo needs pellet prices to stay above USD 87/t (current price is USD 103/t) to generate enough funds to repay its debt and cover other capital needs (the miner breaks even operationally at a pellet price of USD 76/t in China port). We are downgrading our outlook on FXPOLN Eurobonds to neutral from positive...

Источник: Конкорд Капитал

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