Qantas regained its investment grade rating, Asciano receives second takeover proposal from QUBE Logistics, WA Stockwell has delivered its FY15 audited accounts and new factsheets added for Australian Gas Networks (formerly Envestra)
Asciano receives second takeover proposal from QUBE Logistics
Last week, Asciano received an indicative proposal from a consortium led by QUBE Logistics to acquire all of the equity not currently owned by the QUBE Consortium at an implied value of A$9.25 per share. The consideration payable under the proposal would comprise a combination of cash and equity. The QUBE consortium currently has a stake of around 19.9% in Asciano.
Following the news, Moody’s has indicated that the QUBE proposal has no immediate impact on Asciano's current Baa2 credit rating or negative outlook.
Of note to bondholders, Asciano bonds have a change of control investor put clause which if triggered would require Asciano to repurchase the 2025 bonds at $100. We will continue to monitor the situation and provide further updates as more details emerge. Read more
Australian Gas Networks Company updated Factsheet now available
The Australian Gas Networks Limited 3.04% inflation linked bond is AUD senior secured and has a maturity date of 20 August 2025. The issuer - Australian Gas Networks Limited (AGN) owns gas distribution networks in Victoria, South Australia, Queensland, New South Wales and the Northern Territory. These networks transport gas to domestic, commercial and industrial consumers via retailers, with Australia’s three largest energy retailers taking over 90% of the gas volumes. Download the factsheet
Qantas rating upgrade from S&P
S&P has considered Qantas’ more conservative financial policy framework and other factors which allowed it to reinstate the Australian airline’s investment grade status. The credit rating agency has raised the long term corporate credit and bond ratings on the airline.
The initial impact on the Qantas bonds following the announcement has been positive, with yields tightening around 20 basis points, providing an opportunity for Qantas bondholders to take profit. Read more
W.A. Stockwell FY15 audited accounts and 1Q16 update
All development projects appear to be progressing in line with expectations
Stockwell has given a general business update and released its audited FY15 financial accounts. While the accounts differ from management estimates provided when the bond was issued in June, there is an explanation. The variance was mainly driven by the auditor’s decision to expense various items rather than capitalise them. This typically reflects timing differences in recognition rather changes to income/expenses and are largely non-cash - therefore not considered problematic. Read more