Tuesday 06 December 2016 by FIIG Research Company updates

Company updates – Adani Abbot Point Terminal, G8 Education, Impact Group and Transurban Queensland Finance

Adani tenders for its 2018 bonds and gets government approval for the Carmichael mine, G8 Education and Impact Group both provide a trading update and holders of the Transurban 2021, 2023 and 2024 bonds have been notified of a consent event

Adani Abbot Point Terminal (AAPT)

AAPT has announced a tender offer for its 5.75% senior secured notes due 1 November 2018. There is approximately $437m outstanding from the original $500m that was issued. This follows a tender and repurchase of the notes in August, which resulted in approximately $63m of the notes being bought back by the company.

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

On another note, the $21.7bn Carmichael coal and rail project has secured its final major State and Federal Government approval.  Queensland’s Coordinator-General has approved an application for the project’s rail line into Abbot Point.

State Development Minister Dr Anthony Lynham said, “This is another key milestone for the project, which Adani has confirmed it will start construction on next year.”

The project already has all primary approvals as well as prescribed project and critical infrastructure project status in place to reduce red tape.  The rail section approved this week will form part of the 389km standard gauge, heavy haul railway line from the mine in the Galilee Basin to the coal export Port of Abbot Point.

G8 Education (G8)

G8 released a short trading update, giving full year to 31 December 2016 EBIT guidance of “between $158m and $162m”. This is in comparison with our base case EBIT forecast of $152m. On this metric alone, the business is performing as expected.

Full year results will be released in February 2017.

The ASX announcement is available here.External link - opens in a new window

Impact Group (Impact)

Impact has provided a 1Q17 trading update.

Key points:

  • Impact is performing in line with expectations, and is on track with forecasts in original research of $22m FY17 EBITDA
  • This is supported given 90% of FY17 forecast revenue has been sourced by 30 November 2016

Impact has made the following comments on general market conditions:

“We are noticing a shift from apartments with some moving to townhouses and more moving to house and land packages which is our traditional product offering.”

“Owing to Impact Homes’ small exposure to foreign investors, tightening lending policies to foreign (Chinese) investors from the major banks is continuing to have limited influence.”

The full release is available here*,External link - opens in a new window and all investor correspondence is available to Impact investors via its website.

*You will be required to log into your FIIG account to access this content.

Transurban Queensland Finance (Transurban)

Noteholders of the 2021, 2023 and 2024 Transurban Queensland Finance (Transurban; formerly Sun Group Finance) bonds have been notified of a consent event for a change in terms.

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