OHL - Restructuring and commercial momentum

Dear All,

Please refer to our unchanged model here.

While we understand that the bonds remain illiquid, and their price has not changed over the past few weeks, we see potential opportunities in the post restructured instruments once they start trading.

OHL, even in restructuring, retains a decent commercial momentum with recent contract wins. Yesterday the company won a EUR40m contract for a 150Mw solar plant in Spain. This comes after a couple of certifications received last week for quality and safety, including in the US, which is expected to become OHL’s main target market after the restructuring. 

As we previously discussed, OHL is making progress in its restructuring, and on 10th Feb disclosed that 93% of bondholders have acceded to the lock-up agreement. 

In an environment of fiscal stimulus, which will provide a boost to the construction sector across the world, we see OHL’s post-restructuring future as promising. One of the main objectives of the restructuring is to ensure that the banks are willing to increase the performance guarantees of the group, which are essential for a return to growth. 

Juliano

E: jtorii@sarria.co.uk
T: +44 203 744 7055
www.sarria.co.uk