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OHL Memo 250121

OHL. Restructuring Alternatives 1 & 2 – SUNs Recoveries. What Should SUNs Holders Do?
PUBLISHED: 25 January 2021
SUBMARKET: OHL, Top Reports, Top Reports,


Questions Answered

  • What are recoveries on OHL’s Senior Unsecured Notes (SUNs) under proposed restructuring Alternatives 1 and 2? Base case, base case “plus” and potential recoveries under Alternative 2
  • Is the business plan achievable and what does it imply for valuation of the construction business (excluding potential asset disposals / litigation claims)?
  • Why do we see upside to potential disposal proceeds from OHL’s equity and sub debt investment in Canalejas vs our previous analysis?
  • How do we view execution risk on OHL’s proposed restructuring?
  • What did we learn that was new from OHL’s Cleansing Presentation (dated 21/1/21)?
  • How do OHL’s business plan projections compare with our previous base case projections?
  • How do liquidity, capitalisation and leverage look pro forma for the planned restructuring, rights issue and private placement?

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