Emeria - comment

The sale of Assurimo to Odealim, another entity owned by TA Associates, promises to be very good news for bondholders. The deal, which mirrors the sale of Seiitra earlier this year, should reduce Emeria’s excessive working capital swings and provide liquidity at the same time. We had been discussing this option earlier in the year and consider it very positive news. Thus far, “exclusive” negotiations are ongoing and the buyer is an affiliate, but we expect the transaction to materialise and at a fair arms-length valuation.