HALISTER1: Chile’s Masisa 2019 USD Bonds Rated Outperform at Gimme Credit

Chile’s Masisa 2019 USD Bonds Rated Outperform at Gimme Credit

(Bloomberg) -- Bonds still attractive after rallying earlier this year, expects co. to weather economic storms in countries in which it operates, analyst Cedric Rimaud says in note.
  • ARS depreciation to support exports from Argentina
  • GDP growth expected still in Mexico and Chile
  • Masisa could become acquisition target given its strong foothold in region
    • For example, South Africa’s Steinhoff is on M&A spree
  • Masisa credit metrics have been weakening, coming close to net leverage covenant of 4.5x and interest coverage minimum of 2.5x
    • Bonds will need to be refinanced before 2019
    • Co. is working on reducing its debt by selling assets, securing syndicated loans and repaying more expensive USD bonds
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
MASISA CI (Masisa SA)

People
Cedric Rimaud (Gimme Credit LLC)

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