Fixed Income. O1 Properties - What's Next?
After Boris Mints's holding O1 Group was forced to relinquish control of O1 Properties following several defaults, the new shareholders entered negotiations with bondholders. This resulted in O1 Properties recently waiving the change of control clause on its Eurobonds, thus removing the risk of acceleration of payment. The company is now focused on changing the currency of its credit portfolio and extending the maturity, while cash flow seems set to improve thanks to the tight Moscow office market. However, we are unconvinced that these improvements will actually significantly change the company's credit profile or help bring down leverage. We remain cautious on the O1 Properties 21 Eurobond and see a higher likelihood that the issue will be restructured rather than refinanced.
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
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