Consolidated Energy - comment

The new USD 330 million TLB will fund the calling of the remaining USD 223 SUNs. This will layer the remaining outstanding SUNs with approximately 0.3 times senior leverage. However, relief at the removal of the liquidity overhang more than balances the additional leverage. The consolidation of CNC and N2000 will add approximately USD 120 million of LTM EBITDA, increasing the reported figure to USD 720 million. This reduces total net leverage on the consolidated level to 4.9x. The repayment of the Proman loans will also remove some of the governance concerns. We view asset value as covering debt at CEL, but we acknowledge that Proman may still seek to leverage its control of CEL for further investments, such as the Ammonia plant in Sinaloa. There are already plans for Methanol and Urea production facilities in Sinaloa, which would replicate the investments Proman has made in the Point Lisas Industrial Estate in Trinidad. We will continue to monitor how Proman finances these investments.