FFK Environment offers a coupon of 7.25% and quarterly interest payment
FFK makes waste of money, bond issue is designed to accelerate growth
The FFK Environment GmbH, a manufacturer of climate-friendly alternative fuels (RDF) from waste, plans to issue a corporate bond to finance further growth. The issue is scheduled for May 2011. Thereafter, the listing is in the "middle class market," the Dusseldorf Stock Exchange.
Company
The FFK Environment GmbH provides climate-friendly alternative fuels from waste (household garbage and construction waste). Replacement fuels to replace fossil fuels such as lignite or coal in power generation in power plants and in the cement industry. In the business areas of logistics and management, commodity production and commodity trading, the company offers services related to waste disposal and the recycling of secondary raw materials in the recycling process. The FFK Environment operates the largest facility for the production of alternative fuels in Brandenburg, with an annual processing capacity of 280,000 tonnes. This allows about 350,000 tons of climate-damaging coal to replace Brown. The customers of the company include major utilities like Vattenfall and E. ON as well as leading European cement manufacturers such as Heidelberg Cement Cemex or Dyckerhoff.
Business
The FFK Environment GmbH has completed the 2010 fiscal year with a total capacity of 26.5 million euros (+11%) and a record profit (EBIT) of EUR 3.3 million (+ 107%). Net income rose from EUR 0.9 million to 1.9 million euros (+116%). With total assets of 20.5 million euros, the equity ratio was approximately 26.4%, 30/12/2010.
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EVENT NOTICE:
On 24 May in Cologne, the Entrepreneur Workshop "corporate bonds - a chance for the middle class instead.
Partners of the event are: BOND MAGAZINE, Börse Stuttgart, Creditreform rating IR.on, Osborne Clarke and quirin bank
Details at
Bond Conference: Unternehmensanleihen
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Funds
The funds from the loan will finance FFK largely on both the organic and the inorganic growth. In addition to new facilities in Berlin and Eisenhuettenstadt also be explored acquisitions of regional waste management companies to increase coverage of the input side with household and commercial waste. With two acquisition targets we are already in negotiations.
Frank Kochan, CEO of the FFK Environment GmbH, said: "We plan our production of climate-friendly fuels to expand significantly. The opportunities in this market are currently better than ever, and to inspire the debate on our energy systems faster rate. For alternative fuels a climate-friendly energy source, reducing the customers, such as cement manufacturers and energy suppliers provide their CO2 emissions and thus save significant costs for emission rights can. "
Conclusion:
FFK Environment operates in a promising market. The business model suited to the present time. Even CEO Frank Kochan, who owns 100% of the shares, makes us a very positive impression. From 2013, the power plant customers FFK their bid for CO2 allowances in full. So the business should lead clearly gathering pace. The issue size is expected in comparison to the previous total assets be quite large. The funds will, however, in large part to acquisitions. Two garbage collectors, both of which are profitable, the company is in negotiations. Thus, it should succeed the company to extend the value chain.
A detailed analysis can be found at the beginning of the subscription period under the heading "Bond Check.
FFK Environment - Key figures of the bond
Subscription Period: 16.05.-31.05.2011
Listing: 6/1/2011
Duration: 06/01/2011
Rating: BB + (by Creditreform Rating)
Coupon: 7.25%, quarterly interest payment
Yield: 7.45%
Segment: Mid-Market of the Stock Exchange Dusseldorf
Institutional Sales: Donner & Reuschel
Issue Size: Up to 25 million €
ISIN: DE000A1KQ4Z
