Naviera Armas - Finally!
All,
Please find our unchanged analysis of Naviera Armas here.
We continue to hold our 5% of NAV position in the bonds from January, but had admittedly begun to wonder about the deal, given it is now mid-March. What has been announced today largely reflects our expectations. The penal cash-out of the Apollo/HPS facility hurts, but the back-stop fees for the bridge are less punitive than expected.
Price:
The price today reflects the new bonds, which share the same collateral package as most of the other debt but are effectively the most junior ranking piece. The equity travels for free.
Positive:
- Governance: We are still going through how likely it is any of the new structure is actually going to change the way the company is run, but there has clearly been an effort to share some control.
- Exit: The board is to launch a sale process of the group until March 2024, or before if the group achieves E100m EBITDA.
Negative:
- Business Plan: missing.
Wolfgang
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E: wfelix@sarria.co.uk
T: +44 203 744 7003