Tuesday 21 March 2017 by FIIG Research Company updates

Company updates – Emeco, Genworth Australia, Genworth Financial, IAMGOLD and Mackay Sugar

In this week’s company updates, Emeco received Federal Court approval for its revised restructuring scheme, Genworth Australia’s issuer rating placed on outlook negative, we provide an updated 2017 research report for Genworth Financial, a new DirectBond from IAMGOLD and Mackay Sugar released further details of its debt reduction plan

Emeco

Emeco has announced that on 15 March 2017, the Federal Court of Australia approved its revised restructuring scheme. This follows previous approvals from Emeco’s noteholders and shareholders.

More information is available here.External link - opens in a new window

Genworth Australia

Ratings agency Standard and Poor’s (S&P) has placed the issuer credit rating of Genworth Australia on negative outlook, following confirmation last week that the firm lost its second largest customer – roughly 14% of its gross written premium (GWP).

This follows the loss of its major Westpac contract in 2015. S&P views these losses as a decline in Genworth Australia’s market position – creating a narrower and more vulnerable business profile – exacerbated by FY16 results that saw its gross written premium fall by circa 25%.

Notwithstanding, Genworth Australia had a strong regulatory capital base at 31 December 2016. S&P advised it is looking for a stabilisation of the group’s competitive position and operating performance over the next two years to avoid a credit rating downgrade.

Genworth Financial Inc. (US parent) 2017 research report

Genworth Financial Inc. provides long term care (LTC) and mortgage insurance products and services throughout the United States, Canada and Australia. The market leader in LTC, in early 2016 the group announced it would cease the sale of Life and Annuity products (excluding LTC) following persistently weak sales and longer payouts as life expectancy increased. This effectively placed that business into run off and positioned the US mortgage insurance business as the main driver of value for Genworth where mortgage insurance continues to generate strong revenue growth.

We have provided an updated 2017 research report for Genworth Financial Inc., which can be accessed here.*External link - opens in a new window

*Note: You will be required to log in to access this research document.

IAMGOLD new 2025 USD DirectBond

With headquarters in Toronto, Canada, IAMGOLD is a mid tier mining company with four operating gold mines on three continents: Canada, West Africa, and South America; as well as development and exploration projects. IAMGOLD is listed on the Toronto and New York Stock Exchanges, with a market capitalisation of around USD1.565bn as at 10 March 2017.

IAMGOLD’s principal assets are four operating gold mines: Westwood in Quebec, Canada; Rosebel in Suriname, South America; Essakane in Burkina Faso and Sadiola in Mali, both in West Africa.

The IAMGOLD senior unsecured fixed rate bond, maturing in April 2025, is US dollar denominated and available to wholesale investors only in minimum parcels of USD10,000, with denominations of USD2,000 and integral multiples of USD1,000 thereafter.

For more information please see the IAMGOLD 2025 bond factsheet.External link - opens in a new window

Mackay Sugar

Mackay Sugar has released further details of its asset sale and debt reduction plan, based on recommendations from corporate advisory firm Kidder Williams.

More information is available here.External link - opens in a new window

 

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