BREADTALK GROUP LIMITED
5DA.SI
BreadTalk Group: Issues notes from MTN programme
- BreadTalk Group has announced an issuance of S$75m 4.60% notes due 1 Apr 2019, pursuant to the S$250m multi-currency medium term note (MTN) programme established in 2014.
- Net proceeds arising from this issue will be used for general corporate purposes, including refinancing of existing borrowings, and financing capital expenditure and general working capital.
- As of 31 Dec 2015, net debt/equity was at 0.83x. With this issue, an estimated additional S$3.5m of interest expense would be incurred per year, adding some pressure to bottom-line.
- While the group is focused on rebranding, improving cost rationalization as well as productivity, we still expect to see the usual drags from gestation, depreciation and potential consolidation.
- We prefer to see a steadier state of growth across all segments, and until then, we keep our SELL rating on the stock with fair value estimate of S$0.96.
Jodie Foo
OCBC Securities
|
http://www.ocbcresearch.com/
2016-03-22
OCBC Securities
SGX Stock
Analyst Report
0.96
Same
0.96
