Sectors > Top Reports > Aldesa Memo 190619

Aldesa Memo 190619

Buy Senior Secured € 7.25% 2021 At 42.55 – Out-Of-Court Restructuring Options Deliver Value Of 80 Or Higher
PUBLISHED: 19 June 2019
SUBMARKET: Aldesa, Top Reports, Top Reports,


Why Read?

  • Understand what self-help options Aldesa has (working capital reversal and asset sale potential) and whether there is a path to refinancing
  • Understand how out-of-court restructuring options may be able to deliver 80% or higher value for senior secured notes
  • Understand Aldesa’s quarterly working capital drivers and whether Q1 2019 will reverse
  • Understand Aldesa’s liquidity
  • Understand Aldesa’s off balance sheet items and their potential impact on liquidity and leverage – factoring and reverse factoring; performance guarantees; sales of backlog
  • Understand asset sale potential – restricted group non-operational assets; unrestricted group assets
  • Understand the background behind Aldesa’s difficult 2018 and Q1 2019 and the precipitous drop in bond price
  • Understand why Aldesa’s situation is different to the failed Astaldi and CMC Ravenna
  • Understand the distinction between restricted group and unrestricted group 
  • Understand Aldesa’s valuation sensitivity to working capital, new orders and cost of capital in terms of equity cushion and debt coverage
  • Understand in detail the Concessions business within Aldesa

What’s New?

  • Analysis of out-of-court restructuring options as well as self-help options
  • Liquidity projections – including stressing for further reduction in confirming lines and non-typical working capital reversal
  • Identification of potential assets for sale – both non-operational within restricted group and unrestricted group
  • Valuation of the business and recovery rate


Questions Answered

  • Is there a self-help path to refinancing of senior secured notes for Aldesa?
  • What can senior secured note holders expect from any out-of-court restructuring?
  • When does liquidity break and what could accelerate this?
  • Is Aldesa’s Q1 2019 working capital outflow likely to reverse and by how much?
  • To what extent does Aldesa’s working capital movement reflect reduced confirming line lender and customer appetite to extend credit risk or shift in business mix towards private sector and Industrial / energy segments?
  • What is our base case valuation of Aldesa and its key sensitivities? How does recovery look?

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