Pfleiderer - comment

Management revealed the successful asset financing of its recent investments in Stettin of approx. €9m, leaving some €16m undrawn under the Nord basket. However, we are not sure if the remainder of the basket can be practically accessed. The €50m super sr. basket remains untouched. So Pfleiderer is burning €-50m p.a., to improve to €-25m next year, with little liquidity headroom now and a €50m super sr. basket. Neither management nor anyone else foresees a significant revenue rebound next year, so in the best case scenario, it gets very tight in 2027. With a downside of €55c/€ the bonds are not cheap at 76c/€.