Tuesday 22 September 2015 by Company factsheets

Coffey Corporate AUD Senior Unsecured Bond

Coffey Corporate Pty Ltd 90 day BBSW+4.65% 12 September 2019 AUD Senior Unsecured Bond

Coffey International Limited (Coffey) is a specialist professional services consultancy, established in 1959, with expertise in engineering, geosciences, international development and project management. Coffey was listed on the ASX in 1990 and has a current market capitalisation of approximately $35m. Between 2003 and 2008 Coffey expanded rapidly to become a global operator across six key geographical regions. The global financial crisis however saw the business refocus its operations. Most recently, the collapse in commodity markets has again driven further company restructure. Coffey operates its business through three segments: Geosciences, International Development and Project Management.

A sustained recovery for the business and the subsequent reduction of debt are key to the credit strength of Coffey. If the turnaround is delivered, bondholders will gain from exposure to an improving credit profile. However, if the deteriorating credit metrics and poor cashflow are not addressed in the coming 12–18 months, the company will become increasingly exposed to refinance and insolvency risk. We strongly recommend investors read the full research report.