Sell InterCement Bonds as Sale Deadline Looms: Lucror Analytics
Published 10 June 2024, 13:55:36.503 GMT
By Maria Elena Vizcaino
(Bloomberg) -- Lucror Analytics is recommending clients sell InterCement’s 2024 bonds amid “ongoing uncertainty and limited time to close sale of company to CSN.”
* “While negotiations could be extended until July 12th, there is no guarantee that the bonds will be honoured in full under the current terms even if the sale materialises,” strategist Lorena Reich wrote in a note on Monday.
** NOTE: Brazil’s InterCement has $750 mln in bonds maturing on July 17
* “As time is running short and we believe there is more downside than upside from current levels, we move our trade recommendation to ‘Sell’ from ‘Hold’”
* It’s also still unclear whether the asset sale covers the entire company or just the Brazilian assets, or what the new structure would look like
* Though the company has extended a standstill with local debenture holders several times, banks have not given “InterCement carte blanche to extend their agreements until the asset sale has been completed”
* NOTE: Earlier, Cement Maker Races to Reach CSN Deal as Bonds Teeter on Edge