Joe Silver
Forumer storico
Temo che le cose siano un poco più complicate.
Mi viene in mente il famoso verso ' ci son più cose in cielo e in terra di quante ne possa sognare la tua filosofia'.
Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1
- Creatore Discussione TRADING_IDEAS
- Data di Inizio
- Stato
Temo che le cose siano un poco più complicate.
Mi viene in mente il famoso verso ' ci son più cose in cielo e in terra di quante ne possa sognare la tua filosofia'.
zoro-aster
Forumer storico
soc. brasiliana leader mondiale nella produzione di munizioni di piccolo e medio calibro
hernan1
Forumer attivo
Frontier Communications (Citizens Comms) 7.125% 2019
Stò considerando Frontier (Citizens) Communications 2019. Qualcuno ne ha oppure conosce quest' emitente? Opinioni? Grazie.
FTR Frontier Communications Corp debt, bond, rates, credit - Morningstar
FTR debt, bond, rates, quotes, yields - Morningstar
Stò considerando Frontier (Citizens) Communications 2019. Qualcuno ne ha oppure conosce quest' emitente? Opinioni? Grazie.
FTR Frontier Communications Corp debt, bond, rates, credit - Morningstar
FTR debt, bond, rates, quotes, yields - Morningstar
arkymede74
Forumer storico
io ho la 9%.. 2031 di scadenza mi pare....
qquebec
Super Moderator
Fortescue’s $750 Million Debt Repayment Offer Is Credit Positive
Last Tuesday, Fortescue Metals Group Ltd. (Ba2 negative) announced that it had launched a $750 million
debt-repayment offer for its 8.25% senior unsecured notes due in 2019 and 6.875% senior unsecured notes
due in 2022. The debt-repayment offer is credit positive for Fortescue because it has the potential to reduce
the company’s total debt by more than 8%.
Under the proposal, noteholders can tender their 2019 notes at $0.88-$0.93 per $1.00 of principal and their
2022 senior unsecured notes at $0.75-$0.80 per $1.00 of principal. The transaction, which will be
conducted via a modified Dutch auction, follows $384 million of debt repayments that the company
completed earlier this year. The notes involved in the most recent transaction were issued by Fortescue’s
finance subsidiary, FMG Resources (August 2006) Pty Ltd.
If there is a full uptake of the offer, it will lower the company’s reported total debt to around $8.4 billion
from around $9.6 billion for the fiscal year that ended June 2015. This is more than a 30% reduction from
the company’s peak debt level of around $12.7 billion in fiscal 2013 (see Exhibit 1). We expect the
repayment to improve Fortescue’s financial leverage, as measured by adjusted gross debt/EBITDA, by 0.2x-
0.4x under our base-case iron ore price assumption of $45-$50 per tonne for fiscal 2016. Fortescue’s
adjusted debt/EBITDA was around 4.0x in fiscal 2015.
The debt-repayment offer illustrates Fortescue management’s commitment to apply excess free cash flow
to debt reduction and its target of achieving a gearing ratio, as measured by debt/debt plus equity, of
around 40%.
Even as iron ore prices remain at persistently low levels, Fortescue has been able to generate positive free
cash flow by consistently reducing its cash costs and achieving record production levels. At the end of the
September 2015 quarter, the company had reduced its cash costs of production to around $17 per wet
metric tonne, an approximately 66% reduction since fiscal 2012 (see Exhibit 2). Fortescue also continues to
achieve an annual run rate of around 165 million tons per annum of ore shipped.
Fortescue will also lower its interest expense if the offer is successful. If the company achieves an even split
of the $750 million between the 2019 and 2022 tranches, we estimate that the annual interest savings
would be $55-$60 million. This would be in addition to the estimated annual interest savings of $33 million
as a result of the $384 million of debt repayments earlier this year.
Notwithstanding the credit-positive aspects, the announced offer slightly reduces Fortescue’s liquidity
cushion at a time when iron prices are low. However, under our base-case iron ore price assumption, we
expect the company to continue to generate positive free cash flow and preserve its solid cash balance. The
company had a cash balance of around $2.6 billion at the end of September 2015.
Fortescue expects the offer’s early payment date to be 30 November 2015 and the final payment date to be 10 December 2015.
Last Tuesday, Fortescue Metals Group Ltd. (Ba2 negative) announced that it had launched a $750 million
debt-repayment offer for its 8.25% senior unsecured notes due in 2019 and 6.875% senior unsecured notes
due in 2022. The debt-repayment offer is credit positive for Fortescue because it has the potential to reduce
the company’s total debt by more than 8%.
Under the proposal, noteholders can tender their 2019 notes at $0.88-$0.93 per $1.00 of principal and their
2022 senior unsecured notes at $0.75-$0.80 per $1.00 of principal. The transaction, which will be
conducted via a modified Dutch auction, follows $384 million of debt repayments that the company
completed earlier this year. The notes involved in the most recent transaction were issued by Fortescue’s
finance subsidiary, FMG Resources (August 2006) Pty Ltd.
If there is a full uptake of the offer, it will lower the company’s reported total debt to around $8.4 billion
from around $9.6 billion for the fiscal year that ended June 2015. This is more than a 30% reduction from
the company’s peak debt level of around $12.7 billion in fiscal 2013 (see Exhibit 1). We expect the
repayment to improve Fortescue’s financial leverage, as measured by adjusted gross debt/EBITDA, by 0.2x-
0.4x under our base-case iron ore price assumption of $45-$50 per tonne for fiscal 2016. Fortescue’s
adjusted debt/EBITDA was around 4.0x in fiscal 2015.
The debt-repayment offer illustrates Fortescue management’s commitment to apply excess free cash flow
to debt reduction and its target of achieving a gearing ratio, as measured by debt/debt plus equity, of
around 40%.
Even as iron ore prices remain at persistently low levels, Fortescue has been able to generate positive free
cash flow by consistently reducing its cash costs and achieving record production levels. At the end of the
September 2015 quarter, the company had reduced its cash costs of production to around $17 per wet
metric tonne, an approximately 66% reduction since fiscal 2012 (see Exhibit 2). Fortescue also continues to
achieve an annual run rate of around 165 million tons per annum of ore shipped.
Fortescue will also lower its interest expense if the offer is successful. If the company achieves an even split
of the $750 million between the 2019 and 2022 tranches, we estimate that the annual interest savings
would be $55-$60 million. This would be in addition to the estimated annual interest savings of $33 million
as a result of the $384 million of debt repayments earlier this year.
Notwithstanding the credit-positive aspects, the announced offer slightly reduces Fortescue’s liquidity
cushion at a time when iron prices are low. However, under our base-case iron ore price assumption, we
expect the company to continue to generate positive free cash flow and preserve its solid cash balance. The
company had a cash balance of around $2.6 billion at the end of September 2015.
Fortescue expects the offer’s early payment date to be 30 November 2015 and the final payment date to be 10 December 2015.
fabriziof
Forumer storico
iguanito
Forumer storico
Sì, da quando le ho prese io..... Però ho la 2018
- Stato
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