KrisEnergy

KrisEnergy: Yesterday, KrisEnergy fully redeemed its US$120m senior guaranteed secured bonds due in 2016. CLSA estimates that this reduces debt cost by >US$10m per annum on an ongoing basis. While Kris will need to obtain another line of credit, this is likely to be cheaper post IPO. House views that the recent correction in stock price is overdone and reiterates its BUY rating with $1.58 TP.