Nouryon’s 2026 Bonds Face More Declines, Spread Research Says
2020-03-16 09:24:54.755 GMTBy Tatiana Darie
(Bloomberg) — Spread Research sees more downside risk for
Nouryon’s EU485m senior unsecured 6.5% 2026 notes due to the
coronavirus’ impact on earnings, analyst Benjamin Sabahi wrote
in a note late last week. The bonds extended losses for an
eighth session, slipping about 1.3 cents to 83.82 on the euro on
Monday to a record low.
* The specialty chemicals company guided for a mid-single-digit
revenue decline and a “modest” low-single-digit Ebitda decline
in 1Q y/y to account for virus impact, the analyst wrote
* While this year’s Ebitda decline would be less pronounced than
the declines in 2012-13 during the European sovereign debt
crisis, “the coronavirus impact may have a more severe impact on
European GDP”
* Nouryon may see accelerated pressure on Ebitda in the coming
quarters, and could cut its guidance on adj. Ebitda, the analyst
* Spread Research said investors could re-enter the notes after
the company’s updated guidance as the credit “will nevertheless
remain solid”
* In the loan market, Nouryon has repriced $4.197b USD TLB,
EU1.790b EUR TLB maturing in 2025 back in January

–With assistance from Irene García Pérez.