HALISTER1: Lucror Takes Negative View of New Senvion Bonds on Weak Outlook

Lucror Takes Negative View of New Senvion Bonds on Weak Outlook

(Bloomberg) -- Investors should avoid new bonds issued by German wind-turbine maker Senvion which has a “limited” share of a competitive, high-cost market where scale is key, Lucror Analytics says in a note on Wednesday.
  • Says: “we do not recommend the new notes”
    • Cites “weak prospects for 2017 and company’s 4.4% global market share vs market leader Vestas’ 24.5%
    • ‘‘Substantial pressure” on prices
    • “Unfavorable” regulatory developments in key market
    • Lack of offering for low wind speeds
* Also, says company’s plan to co-invest in projects with customers could entail additional capital in the medium term
  • On roadshow call, management maintained guidance for FY, said aims to reduce share of revenues from Europe to ~40% from 73%: Lucror
  • New bonds will be used to redeem in full the existing EU400m notes issued in 2015, extending debt maturity
  • On Tuesday, Moody’s assigned B2 rating to Senvion’s new notes, one notch below the group’s corporate family rating with a positive outlook; this reflects the bond’s subordinated position
  • NOTE: On April 25: MANDATE: Senvion EU400m 5.5NC2 Snr Sec Green Bond Roadshow

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
SEN GR (Senvion SA)

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