Tuesday 04 September 2018 by Sophie Kessler Company updates

Company updates – Axsesstoday, AroundTown, DBCT, Dicker Data, Ensco, Mackay Sugar, NextDC, PMP, Transocean, Virgin Australia, new and updated Factsheets

This week, Australian company results, Ensco downgrade, Mackay Sugar recapitalisation update, Transocean downgrade, new and updated factsheets from JEM Schools and ALE Finance Company.

 

Axsesstoday annual results – Outperform recommendation

On 27 August 2018, Axsesstoday announced its FY18 results.

We retained an outperform recommendation on the AUD50m 7.5% bond due 2021 and AUD30m 3mBBSW+6.50% bond due 2022. At the same time, we revised the credit outlook to stable from positive.

Read the full reports for retail and wholesale investors here.

 

AroundTown annual results – Growth with acquisitions

On 30 August 2018, German real estate investment company Aroundtown SA, reported solid 1H18 results to 30 June 2018.

Aroundtown has grown substantially via acquisitions and is likely to continue this strategy.

Read the full report here.

 

DBCT Update – Moody’s revised outlook

On 3 September 2018, Moody’s Investors Service revised the outlook on DBCT Finance’s debt ratings to positive, from stable. DBCT is the finance subsidiary for the Dalrymple Bay Coal Terminal located near Mackay in Queensland and is one of the largest coal export facilities, handling approximately 22% of the global seaborne metallurgical coal.

Read the full report here.

 

Dicker Data’s half year results – Outlook remains negative

We reiterate our Market Perform recommendation on Dicker Data’s 3mBBSW+4.40% Notes due 2020. The credit outlook remains Negative

We have a Negative outlook on Dicker as we expect debt and leverage to increase over 2019 as it develops its new distribution facility.

 Read the full report here.

 

Ensco - S&P downgrade

Attached is a short note on the S&P downgrade of Ensco, including rationale for the rating action.

Since we see a strong probability of further downgrade, we have clearly stated our recommendation to sell.

 Read the full report here.

 

Mackay Sugar recapitalisation update

On 31 August, Mackay Sugar Ltd (MSL) released its August update regarding the recapitalisation process.

MSL agreed to provide a formal Noteholder update on progress of the plan every two months. They previously stated that information requests had tailed off and commented that it understands interested parties are finalising their internal analysis and commercial, financial and legal due diligence. The MSL board now expects a final decision as to whether any formal binding bid will be lodged by mid October.

 Read the full report here.

 

NextDC FY18 results – Continues to perform strongly

Credit metrics remain strong with NEXTDC in a net cash position at FYE18 of AUD113.8m (FY17: AUD66.0m). Liquidity remains excellent with cash of AUD718m and undrawn credit lines of AUD300m.

While the business is performing strongly the bonds have rallied significantly.

Read the full report for wholesale and retail investors here.

 

PMP FY18 results – Credit outlook stable

PMP Ltd has reported its full financial year results to 30 June 2018 which were broadly in line with our expectations. We change our recommendation on PMP’s 6.43% notes due 2019 from outperform to market perform. The credit outlook is stable.

Read the full reports for wholesale and retail investors here.

 

Transocean Downgrade by S&P

On 30 August 2018, S&P Global Ratings downgraded its rating on global offshore contract drilling service provider Transocean Inc by one notch. The outlook on the rating remains negative. The company also downgraded its issue rating on the company’s 2023 notes.

Read the full report here.

 

Virgin Australia annual results – Preference shifted from 2019 to 2021

On 29 August 2018, Virgin Australia announced its FY18 results.

The results were in line with our expectations with no material change to our FY19 forecast. Similar to Qantas, VAH has flagged increasing costs but its guidance remains lower than our assumption.

Read the full reports for wholesale investors only here.

 

New and updated Factsheets

We now have the following Factsheets for wholesale investors only:

  • JEM (NSW Schools II) Pty Ltd 3.13% Nov 35 senior secured inflation linked note here.
  • JEM (NSW Schools II) Pty Ltd 3.13% Nov 31 senior secured inflation linked note here.
  • ALE Finance Company Pty Ltd 3.40% Nov 2023 Class AA - CMBS note here.

     

    We now have the following factsheets for retail investors:

  • JEM (NSW Schools II) Pty Ltd 3.13% Nov 35 senior secured inflation linked note here.
  • JEM (NSW Schools II) Pty Ltd 3.13% Nov 31 senior secured inflation linked note here.
  • ALE Finance Company Pty Ltd 3.40% Nov 2023 Class AA - CMBS note here.

 

 Please note yields are accurate as of 5 September 2018, subject to change.

 

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