In today’s briefing:
- Vedanta Resources – Event Flash – 5NC2/7NC3 Notes Offering – Lucror Analytics
- [ETP 2024/36] Oil Slumps as Supply Fears Fade; Nat-Gas Soars on Rising Demand Outlook
- Morning Views Asia: Greentown China, Medco Energi
- IXR Update Note IonicTech Magnet Recycling 05092024
- Kinetik Holdings: An Expanded Processing Capabilities and Infrastructure Development As A Critical Growth Lever! – Major Drivers
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Vedanta Resources – Event Flash – 5NC2/7NC3 Notes Offering – Lucror Analytics
Vedanta Resources (VRL) has launched a roadshow to market its USD 144A/RegS benchmark-sized notes (likely to be 5NC2 or mainly 5NC2, and/or 7NC3), with a potential total size of USD 1.5 bn. The proceeds will be used to refinance the USD 13.875% 2027 notes (USD 470 mn outstanding) and USD 13.875% 2028 notes (USD 1,008 mn outstanding). VRL has sent a conditional redemption notice to trustees of the 2027 notes and 2028 notes, assuming the proposed notes issuance is successful. VRL has concurrently launched a tender offer for the 2027 and 2028 notes.
We expect the proposed 5NC2 notes to price at c. 10%, and the 7NC3 notes at c. 11%.
[ETP 2024/36] Oil Slumps as Supply Fears Fade; Nat-Gas Soars on Rising Demand Outlook
- For the week ending 30/Aug, US crude inventories fell by 6.9m barrels, surpassing analysts expectations a 600k barrel drawdown. Distillate stocks surprisingly dropped, while gasoline inventories unexpectedly rose.
- US natural gas inventories rise 13 bcf for the week ending 30/Aug, missing analyst expectations of a 26 bcf buildup. Inventories are 10.7% above the 5-year seasonal average.
- ADNOC to acquire a 35% stake in ExxonMobil’s proposed low-carbon hydrogen facility. BPN Paribas raised the target price on Chevron, while Grupo Santander downgraded TotalEnergies.
Morning Views Asia: Greentown China, Medco Energi
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
IXR Update Note IonicTech Magnet Recycling 05092024
- Ionic Rare Earths Ltd (ASX:IXR) is a magnet (REOs) recycling (Belfast, UK) and REE mining explorer (Uganda) plus a Brazilian REE Refining JV, excluded from our NPV, with Viridis Mining and Metals Limited (VMM).
- ACF visited IonicTech’s magnet recycling demo plant in July 2024.
- Since our last IXR Flash Note, we raise our valuation by 16% to A$ 0.109 vs A$ 0.094 previously and put Makuutu in a maintenance period.
Kinetik Holdings: An Expanded Processing Capabilities and Infrastructure Development As A Critical Growth Lever! – Major Drivers
- Kinetik’s Second Quarter 2024 earnings results reflect a period of significant transition and growth, underscored by its expansion through strategic acquisitions and portfolio adjustments.
- The quarter marked the closure of the GCX divestiture and the Durango acquisition, broadening Kinetik’s operational footprint in the Permian Basin, particularly into the northern Delaware Basin.
- This expansion not only diversifies Kinetik’s geographic footprint and customer base but also improves its balance sheet and aligns with its strategic growth ambitions.