Home |  Products |  Bios |  News |  Contact Us |  FAQ
  Independent Research on Corporate Bonds Since 1994 Preferences|Login


First Horizon National Corp. 06-03 02:43 GMT  
(Report with Analyst's Data Sheet) 
First Horizon National Corp. tapped the corporate debt markets in May, pricing $800 million in senior debt in a two-tranche...
Deal Pending by Kathleen Shanley, CFA
Polyus Gold International 06-03 02:10 GMT  
(Report with Analyst's Data Sheet) 
Polyus PJSC (PGILLN) reported some good results for 1Q20, broadly in line with market expectations. The company said that during 1Q20,...
Higher Gold Prices To The Rescue by Alexandre Dray
Ingles Markets 06-03 01:53 GMT  
(Report with Analyst's Data Sheet) 
Ingles Markets (IMKTA) had a very strong fiscal 2020 second quarter as it clearly pays to be an essential business during a global pandemic.
Essential Business  by Evan Mann, CFA
Extended Stay America 06-02 01:02 GMT  
(Report with Analyst's Data Sheet) 
Extended Stay America (STAY) says its business model that serves the longer stay traveler, has proved more resilient in the COVID-19 crisis than...
Staying Home by Kim Noland
Nordstrom 06-02 00:58 GMT  
(Report with Analyst's Data Sheet) 
When Nordstrom reported first quarter results last week, we learned how close it had come to the brink of serious liquidity issues. Issuance of secured bonds and...
Stayin' Alive by Carol Levenson, CFA
Dell Technologies Inc. 06-02 00:54 GMT  
(Report with Analyst's Data Sheet) 
Dell Technologies reported relatively flat revenue for its fiscal first quarter. While that may not appear all that impressive, consider that...
Flat Is Good by Dave Novosel, CFA
CIFI Holdings Ltd 06-02 00:46 GMT  
(Report with Analyst's Data Sheet) 
Reporting on the performance of its sales up to April 2020, CIFI Holdings Ltd (CIFIHG), one of the top real estate developers in China, did not provide...
Coronavirus Hit by Cedric Rimaud, CFA
HP Inc. 05-28 17:23 GMT
(Comment)
HP Inc. posted an 11% decline in revenue for the fiscal second quarter that ended on April 30th. Revenue...
Earnings by Dave Novosel, CFA
HP Inc. posted an 11% decline in revenue for the fiscal second quarter that ended on April 30th. Revenue was constrained by supply chain disruptions as well as weaker demand stemming from the coronavirus outbreak. PC segment revenue fell 7%, as a slight decline in notebooks was overshadowed by huge declines in desktops and workstations. Printing revenue plummeted almost 19%, reflecting the closure of many commercial offices beginning in March. Overall operating margins were flat to last year, with a substantial drop in Printing margins offset by a huge increase in PC margins. The PC unit benefited from component cost decreases. Free cash flow was negative in the second quarter due to delayed manufacturing timing and back-end loaded sales. But management expects to be FCF positive in the second half of the year. HP intends to return 100% of its free cash flow to shareholders via share repurchases and dividends in fiscal 2020 and 2021. But it will not proceed with its massive $15 billion stock buyback plan, which was initiated in an effort to stave off a deal with Xerox. The uncertainty caused by the coronavirus suggests maintaining liquidity is more important. Given leverage of only 1.3x, we see no urgency for debt reduction. HP projects a sequential increase in PC revenue in Q3, attributable to increased demand for products needed to work from home. However, Printing revenue is expected to decline even more than in Q2.
Macy's 05-26 14:45 GMT
(Comment)
Macy's has put together a preliminary financing package that the company believes will give it sufficient...
Liquidity by Carol Levenson, CFA
Macy's has put together a preliminary financing package that the company believes will give it sufficient liquidity to resolve accrued payables, fund operations, and meet debt maturities in fiscal 2020 and fiscal 2021. The package includes an asset-based lending (ABL) credit facility of near $3 billion secured by inventory and a $1.1 billion private placement due 2025 secured by real estate (contingent upon the closing of the ABL facility). Macy's also anticipates amending its existing revolver, with $1.5 billion drawn, to suspend or remove many covenants (the current sticking point in its liquidity situation), to repay the revolver with the new bond proceeds plus cash on hand, and to reduce the existing revolver to $100 million. As we anticipated, existing unsecured bondholders will be subordinated to the new creditors, with much of the company's valuable asset base transferred to a PropCo (via a reorganization) to secure the new bonds. Presumably the company's lawyers have vetted this reorganization and the transfer of valuable assets and found this to be permitted by the existing bond indentures, but bondholders may not agree with this legal reasoning, especially if the company should still become insolvent. Preliminary first quarter results indicate a severe cash burn and a substantial loss while the entire store base was closed due to the COVID-19 pandemic, with an estimated operating loss of $905 million to $1.1 billion before a material asset impairment charge incurred for the quarter. If the financing package is closed, it will buy Macy's some time, but at the expense of considerable financial flexibility and existing bondholder status. Macy's was on our recent Bottom Ten.
Hertz 05-26 13:48 GMT
(Comment)
As noted in our recent report (GC 5/19/20), Hertz Global Holdings (HTZ) opted to skip the April operating...
Bankruptcy by Evan Mann, CFA
As noted in our recent report (GC 5/19/20), Hertz Global Holdings (HTZ) opted to skip the April operating lease payment for its U.S. rental fleet and had thought last Friday (May 22) to reach a resolution with its corporate lenders and holders of its asset-backed vehicle debt. Unable to reach an agreement to temporarily reduce the required payments under the company's vehicle operating lease, late on Friday the company filed for reorganization under Chapter 11 (U.S. and Canadian businesses only, excludes international operations). HTZ noted that as of the filing it had more than $1 billion in cash on hand to support its ongoing operations. This restructuring process could get messy for the company and the industry in general if the holders of the HTZ asset backed securities attempt to seize their collateral and dispose of all or some of the vehicles in a used wholesale vehicle market that is already under price pressure. We will update developments as warranted.
Bombardier 05-29 
TJX 05-26 
CIT 05-22 
Denbury 05-22 
Olin 05-20 
Boston Scientific 05-14 
Ashland 05-14 
BD 05-12 
Am Axle 05-11 
Host Hotels 05-09 
Extended Stay 05-09 
Tempur Sealy 05-08 
An Independent Viewpoint
Rigorous Analysis
Coverage of Key Securities
Every report is one page, and concludes with an actionable investment recommendation.
May 30, 2020 | Financial World
CL on Houston's Occidental Petroleum cuts dividend by 91% to a penny, shares nosedive 5%
May 29, 2020 | Reuters
CL on Occidental cuts dividend to a penny; shares dive 5%
May 27, 2020 | WSJ Pro
KN on MGM Resorts: Cash Rich for Now
May 11, 2020 | Reuters/International Financing Review
DN on Disney gives up some concession on US$11bn offering
May 8, 2020 | Bloomberg Markets Americas
CL on Boeing's liquidity, the bond issue, and market confidence.
Copyright © 2020. Gimme Credit LLC. All Rights Reserved.