This week, Moody’s released a statement on CenturyLink’s class action lawsuit, and we have three new DirectBonds – an AUD from Aurizon Network, USD from Ensco Plc and AUD RMBS from Resimac
New AUD DirectBond – Aurizon Network
Aurizon Network Pty Ltd, a wholly owned subsidiary of Aurizon Holdings Limited (AZJ), controls, operates and manages the Central Queensland Coal Network (CQCN), under 99 year lease arrangements with the State of Queensland, which commenced in July 2010. The CQCN is the largest coal export rail network in Australia, comprising of four major coal systems and one connecting system link serving Queensland’s Bowen Basin coal region.
The Aurizon Network 4.00% fixed rate bonds mature on 21 June 2024. The bonds also have a make whole provision at 50bps over the relevant treasury yield until 21 March 2024, and are then callable in full with minimum 30 days’ notice thereafter. The bonds are Australian dollar denominated and available to wholesale investors only, in minimum parcels of AUD10,000.
|Next call date
|Aurizon Network AUD June 2024
|Senior unsecured but guaranteed by Aurizon Network and certain of its subsidiaries
|Make whole at 50bps until 21 March 2024
|21 June 2024
In a recent statement, ratings agency Moody’s said CenturyLink’s class action lawsuit is “probably limited, but potentially credit negative”.
“CenturyLink, Inc. ("CenturyLink") is facing a class-action lawsuit alleging that the company falsely signed up customers in Arizona for services that were not requested. Moody's believes that if the company is guilty of the allegations, any potential settlement amount is likely to be limited and unlikely to impact to the company's ratings. However, it is too premature to assess the validity of these claims and the extent of the alleged conduct which could potentially result in a large settlement. The class-action complaint is seeking damages estimated to range between $600 million and $12 billion. Moody's says the recent news does not impact CenturyLink's Ba2 corporate family rating ("CFR") and the ratings remain on review for downgrade. Moody's does not expect the lawsuit to impact CenturyLink's acquisition of Level 3 Communications, Inc., which is on track to close by the end of the third quarter of 2017.”
CF Asia Pacific
We have provided a 2017 research report for CF Asia Pacific.
The research report is available here.*
New USD DirectBond – Ensco Plc
Ensco Plc (Ensco) is UK domiciled provider of offshore contract drilling services to the international oil and gas industry. As at 31 March 2017, Ensco owns and operates an offshore drilling rig fleet of 56 rigs, with drilling operations in most of the strategic markets around the globe. It also has two rigs under construction. Ensco’s rig fleet includes eight drillships, 10 dynamically positioned semisubmersible rigs, three moored semisubmersible rigs and 37 jackup rigs, including rigs under construction.
The company has issued a bond in USD. The Ensco Plc 5.20% fixed rate bonds mature on 15 March 2025. The bonds are available to wholesale investors only, in minimum parcels of USD10,000.
|15 March 2025
New RMBS DirectBond – Resimac
We have added the Resimac series 2016-2 residential mortgage backed securities (RMBS) floating rate class A, AB, B, C and D notes to the DirectBond list. The notes have a final legal maturity on 14 April 2048 and are available to wholesale clients only at the following rates:
|1M BBSW +1.30%
| 1M BBSW +2.20%
|1M BBSW +2.75%
|1M BBSW +3.20%
| 1M BBSW +5.75%
Resimac Limited (Resimac) provides non bank lending via its established and long standing Mortgage Originator partners plus other industry professionals. To date it has funded in excess of A$20bn across 37 domestic and offshore transactions as at December 2016.
Resimac is Australian owned with headquarters in Sydney’s CBD, and supported by key strategic partners including Perpetual Trustees, National Australia Bank, Westpac and the Commonwealth Bank of Australia.
Resimac is a wholly owned subsidiary of ASX listed entity Homeloans Limited.
*Note: This content is only available to wholesale investors and requires a MyFIIG login.