Cat XL
Shizuka Minamoto
Atu
ATU
ATUGRP EUR 11% Snr May 2014 89 – 90.5 YTM 22.82%
ATUGRP EUR Float Snr May 2014
ATUGRP EUR Float October 2014 27 – 32
Coupon paid
Market participants believe that the company was able to service €25m coupon due yesterday, by drawing down fully on the RCF. There are strong concerns on how the company will pay the 7.462% coupon (~€12m) on the €150m Subordinated bond due on July the 1st. We believe the company needs to announce a refinancing deal or begin restructuring talks as soon as possible. Although pricing of Senior bonds recovered a bit they are still discounting the high uncertainty and the clouds that are gathering over the future of the company. Since our last research report at the end of February the company hasn’t shown any particular signs of improvement, quite the opposite, and now after supposedly paying the coupon and being fully drawn on RCF the risk of non-payment of the next coupon has increased dramatically, hence we still think it is better to stay away from senior bonds at current levels.
ATU
ATUGRP EUR 11% Snr May 2014 89 – 90.5 YTM 22.82%
ATUGRP EUR Float Snr May 2014
ATUGRP EUR Float October 2014 27 – 32
Coupon paid
Market participants believe that the company was able to service €25m coupon due yesterday, by drawing down fully on the RCF. There are strong concerns on how the company will pay the 7.462% coupon (~€12m) on the €150m Subordinated bond due on July the 1st. We believe the company needs to announce a refinancing deal or begin restructuring talks as soon as possible. Although pricing of Senior bonds recovered a bit they are still discounting the high uncertainty and the clouds that are gathering over the future of the company. Since our last research report at the end of February the company hasn’t shown any particular signs of improvement, quite the opposite, and now after supposedly paying the coupon and being fully drawn on RCF the risk of non-payment of the next coupon has increased dramatically, hence we still think it is better to stay away from senior bonds at current levels.