OHLA - No more drama - Positioning
All,
Please find our unchanged analysis here.
We have had positions in OHLA since 2021 through two restructurings and almost endless drama. A year after the last restructuring, we are exiting our final position in the name, a 2.7% NAV position in the 2029 SSNs. For now, OHLA is drama-free, but we will continue to follow the name as the €330m SSNs may become interesting again in the future.
Investment rationale:
- We are selling our 2.7% NAV position in the 2029 SSNs at 94.9c/€. We made this trade at the time of the November 2024 restructuring/recapitalisation of OHLA. We received 22c/€ in cash, and the remaining position was converted to the 2029 SSNs with an entry price of 93.5c/€. We have earned 9.5% on the position we had in 12-months. We are happy to forgo the haul to par.
- A stronger European construction market would have seen the bonds move towards par, but construction remains weak. The Canalejas deal with Mohari is due to complete imminently, but is now about splitting the assets rather than a cash deal.
- (0.935) + 5.1% (cash coupon) + 4.7% (PIK) + 0.949 (exit price) = 12.3% * 78% (proportion swapped into the SSN) = 9.6%
Aengus
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