Impresa falls 5% after cancelling debt issuance. “These are bad news”, says BPI

  • ECO News
  • 24 July 2017

The media group Impresa cancelled their bond issuance because the market showed no interest in the operation. "These are not good news", BPI analysts say. Shares suffer a 5% decrease.

Impresa’s shares were under selling pressure, after the media group cancelled the 35 million euros’ bond issuance last Friday. ECO ascertained the market showed no interest for their shares. This emphasized creditors fears about the liquidity of the owner of the Portuguese TV channel SIC, stated BPI.

The company’s securities give in 5.37% to 0.37 euros, the lowest amount of the past month. This plunge takes place after the media group cancelled, last Friday, a bond issuance worth 35 million euros, in an operation which would serve mainly to refinance the previous debt, but also to finance the headquarter’s expansion.

In a press release sent to the CMVM (Portuguese Securities Market Commission), Impresa justified that removal with the recent changes in the media sector, but sources contacted by ECO assure there was another reason: the operation failed because there was no demand from investors.

BPI analysts consider the cancellation of this issuance “is not good news” since it “may raise some concerns on credit holders and challenges IPR [Impresa] liquidity”. The analysts recall that in November 2018, a bond line worth 30 million euros will mature.

"The cancellation of the bond issue is not good news as it might raise some concerns on credit holders and challenges IPR [Impresa] liquidity.”

BPI Research

The company’s securities have been correcting the previous months’ earning, with rumors that it may be a target of an offer from Nos, after Altice’s purchase of TVI.

Note: The information presented is based on an issuance from the investment bank, meaning it is not a recommendation from ECO. Concerning investment decisions, readers should consult the bank’s complete research note and speak to their financial intermediate.

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