Bonds Check: Solar World - sell outstanding loan, buy new bond
The SolarWorld AG, Bonn issued their second corporate bond. Because of this structure is much more interesting than the first bond. Therefore, it seems advisable to sell the outstanding loan and buy the new one. The new bond has a maturity of 5 years it is expected a return of 6.50%. Solarworld belongs to the group of fully integrated solar company. The Group has production facilities in Germany, the United States and South Korea. Here is produced along the entire solar value chain. Fully integrated, with a lean cost structure Solar manufactures solar cells and the World it necessary Wafer and cells. In addition, SolarWorld has its own sources for the procurement of silicon. Here the company is also involved in a joint venture with Degussa, the manufacture of solar silicon from silane using a new method capable. This is cheaper than silicon and would cost the already slender structure of Solar World streamline even further. In the field of solar applications are offered complete solutions (from design to installation) for energy roofs, carports or open spaces. A recent innovation is the World Solar Suncharger, a charger for mobile phones. SolarWorld bundling its activities in the field of recycling in the Altsilizium Sunicon AG. The Bonn are thus well positioned to cope with market growth. Solid figures in the first quarter of 2011 , sales have increased to almost 233 million euros, the increase over the comparable quarter last year was 3.3%. Positively to the high export share of 71.2% (after 33% in the same room). The EBIT margin remained stable at around 11%, the equity ratio for the reporting period will be increased by at least two percentage points to 34.3%. Solar World is so well financed. But it is to throw an eye on the financial debts that add up at the end of March 2011, well at least € 1.1 billion. Solar World is set in the first quarter of 2011 for production and sales of 600 new employees. This corresponds, based on the current total staff, an increase in the amount of 29%. The Group currently sees growth especially in the U.S., which contributed to € 59.6 million in Q1 revenues, while there were barely 14 million euros a year ago. In the U.S. there is next to California to New Jersey, Pennsylvania, Colorado and other states with stable funding arrangements and rapid approval process. Also in Asia was set Solarworld and increase revenues by over 100%. The home market of Germany, however, appears to continue to lose importance. Here, sales slumped in the first quarter of 2010 from € 150.7 million to just € 67.1 million. The bond Solar World emits a bond with a maturity of 7/13/2016, it is expected a return of about 6 , 50% (mid swap +370 basis points). SolarWorld has been issued in the past year bond with a volume of 400 million euros (WKN A1CR73), which runs until 21.01.2017 and has a coupon of 6.125%. At a price of 99.40%, a yield of 6.2%. However, the bond is longer, so that investors get back the new loan their capital before and therefore structurally in advantage. Conclusion: The net profit could, given the growth (particularly overseas) in the current year means the 100-million-euro mark overcome in the previous year to EUR 87.3 million. The World Solar bonds the base under the Green Investment Bonds. SolarWorld has with the new loan is structured so that they can be placed in the current difficult market environment. However, should the investors of funds raised hardly be pleasing. For the new bond is more attractive than the outstanding debt, as investors of funds raised are structurally subordinated. In addition, the new bond even higher returns ... The prospectus of the new bond may be in the category " securities prospectuses are available. " Christian Schiffmacher of the transaction:
Issuer: SolarWorld AG
Rating: No rating
Coupon: expected 6.50% (mid swap +370 bp)
IPO: 07/13/2011
Running Time: 07/13/2016
Interest payment: annually
Denomination: € 1000
Angew. Law: German law
covenants: Change of Control, cross default, pari passu
Listing: Luxembourg WKN / ISIN: A1H3W6/XS0641270045
Passporting: Germany, Austria, Netherlands
Bookrunner: German bank Commerzbank
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