Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

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Equity Bottom-Up

Virgin Australia Holdings / Equity Bottom-Up

Virgin announced a AUD 852 million fully underwritten entitlement share offer which is fully supported by the majority of its existing and new airline shareholders, with only Etihad still to make a decision.   This will be in addition to the proposed AUD 159 million placement to new Chinese shareholder, HNA (yet to receive regulatory approval) and potentially a further AUD 136 million top-up placement to HNA. We estimate the equity raisings will reduce net debt to AUD 710 million and we forecast its financial leverage ratio will improve from 5.5 times to 3.5 times, providing the company with more flexibility if its ultimate goal is to increase its domestic market share from our estimated 36.6%, closer to Qantas' 63.4%.Analyst: Carolyn Holmes

Virgin announced a AUD 852 million fully underwritten entitlement share offer which is fully supported by the majority of its existing and new airline shareholders, with only Etihad still to make a decision.   This will be in addition to the proposed AUD 159 million placement to new Chinese shareholder, HNA (yet to receive regulatory approval) and potentially a further AUD 136 million top-up placement to HNA. We estimate the equity raisings will reduce net debt to AUD 710 million and we forecast its financial leverage ratio will improve from 5.5 times to 3.5 times, providing the company with more flexibility if its ultimate goal is to increase its domestic market share from our estimated 36.6%, closer to Qantas' 63.4%.Analyst: Carolyn Holmes

Corporate Action: Take Up Virgin Australia's Significantly Discounted Entitlement Offer