Norway’s BW Offshore Short End Bonds Offer Value: Danske Bank
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
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Bendik Engebretsen (Danske Bank A/S)
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UUID: 7947283
(Bloomberg) -- BW Offshore’s short maturity bonds are trading 110bps wider than its longer-dated debt and a correction is due, Danske Bank’s credit analyst Bendik Engebretsen writes in a note published Oct. 11.
- Says investors should buy BWO’s bonds maturing in 2020 “outright”
- The main trigger is new extraction and storage vessel being prepared for commissioning which will contribute ~$240m to annual revenues, or 29% of last year’s total
- Says BW Offshore is still a “bondholder story” as part of 2016 financing initiatives, the bond covenants restrict the company from paying dividends or repurchasing stock
- “This implies that the only liquidity drain apart from repaying debt is more capital expenditure”
- See also, Nordic junk bond issuance on way to record as market broadens
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Bendik Engebretsen (Danske Bank A/S)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283