Why Read?

• Price and route comparison across Naviera Armas / Trasmediterranea (ATG) vs competitors Fred Olsen Express and Balearia and vs airlines
• Coronavirus (COVID-19) impact analysis – updated base, bear and bull case financial projections and liquidity analysis / remaining liquidity levers in COVID-19 world
• Understand how ATG’s fuel hedging derivatives work and how its hedges and current fuel costs impact the Group’s competitive position in the new COVID-19 world
• Understand possible restructuring framework under the Spanish Insolvency Act
• Business analysis – segments, regions, clients, suppliers, substitutes, subsidies
• Industry overview and competitors analysis
• Trasmediterranea acquisition analysis
• Understand EBITDA potential of the business and decomposition of where EBITDA has fallen short vs pro-forma levels (plus synergies) at the time of the Trasmediterranea acquisition
• IMO 2020 and lower fuel prices impact – customer pricing, scrubbers EBITDA impact, hedging derivatives impact and scrubber financing
• Valuation – DCF & asset based
• Understand carve-outs for additional secured debt and what mitigates priming risk
• Detailed fleet analysis – vessels owned, chartered in and chartered out; charter rates; transactions; valuation and encumbrance
• Waterfall analysis and expected recovery rates across the capital structure
• Analysis of the capital structure, legal documentation of each debt instrument and bond pricing

What’s New?

• COVID-19 impact on ATG – updated base, bear and bull case financial and liquidity projections
• Detailed port infrastructure analysis – port locations, distance from airports etc. 
• Detailed price and route comparison analysis vs competitors – pricing vs direct competitors and airlines and orphan / monopoly routes
• Fuel cost hedging deep dive

Questions Answered

• What is the potential impact of COVID-19 on ATG?
• How are lower fuel prices affecting ATG and its competitive positioning?
• Under what circumstances would liquidity break and which additional liquidity levers remain?
• How does restructuring work under the Spanish Insolvency Act?
• Will the business be able to deleverage to the extent needed to refinance?
• What recovery can be expected on the Senior Secured Notes (SSNs)? Business and fleet-based valuations