Thursday, April 19, 2012


NOL: is +0.8% at $1.285, outperforming a flat STI, but in line with some regional peers' gains, after the container shipper priced a $400m issue of five-year bonds with a 4.25% annual coupon, in line with pricing guidance from a person familiar with the deal Wednesday.
The offering comes 3 wks after NOL postponed a perpetual-bond issue due to market conditions.
While some analysts have concerns over short-term debt repayments, Jefferies doesn't believe it's an issue. Says, the co is not running out of cash, but is a step for the company to "play it safe". Notes the coupon is "quite good", comparing with the Europeans paying almost 8%, which reflects well on the credit situation for the company. The house was was expecting an interest rate above 5%. Rates at Buy, with TP $1.63, on expectations of a container-shipping-industry turnaround this year, forecasting a 1Q loss and 2Q turnaround.
The $1.36 200-day exponential-moving-average likely offers near-term resistance.

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