MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI BRIEF: Ontario To Cut U.S. Energy Flows When Tariffs Hit

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI China Daily Summary: Wednesday, December 11

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BASIC INDUSTRIES: Tornator (Baa3/NR/NR)): Credit Profile

BASIC INDUSTRIES
BulletCredit Bullets
  • Forestry business, with 89% or cash flows from timber sales. 41% owned by Stora Enso, having been spun off. 95% of its word is sold to Stora Enso. Prices have increased significantly following the ban on imports from Russia.
  • UOP is repayment of 2026 loan. It will look at refinancing options for the 2026 bonds next year.
  • It’s a very high margin business; Moody’s adj. EBITDA margin of 68%. That supports optically high leverage at 6.3x. Secured LTV is 43% and has been in quite a tight range historically. FCF/debt service is 5.7x. Moody’s has assets/debt at 3.6x, well above rating threshold of 2.5x.
  • On the other hand, it’s a small business, essentially single asset and highly dependent on Stora.
  • Secured debt has a 70% LTV covenant. Security may be released subject to LTSAV < 65% and can be changed. 
136 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Forestry business, with 89% or cash flows from timber sales. 41% owned by Stora Enso, having been spun off. 95% of its word is sold to Stora Enso. Prices have increased significantly following the ban on imports from Russia.
  • UOP is repayment of 2026 loan. It will look at refinancing options for the 2026 bonds next year.
  • It’s a very high margin business; Moody’s adj. EBITDA margin of 68%. That supports optically high leverage at 6.3x. Secured LTV is 43% and has been in quite a tight range historically. FCF/debt service is 5.7x. Moody’s has assets/debt at 3.6x, well above rating threshold of 2.5x.
  • On the other hand, it’s a small business, essentially single asset and highly dependent on Stora.
  • Secured debt has a 70% LTV covenant. Security may be released subject to LTSAV < 65% and can be changed.