Daily analyst comments
Pharmacy Chain 36.6: one more step toward debt restructure
11.11.09 12:49
We are upbeat on the fact that Pharmacy Chain 36.6 has succeeded in restructuring its debts: this event could stimulate short-term investment interest in the company’s stock.
Pharmacy Chain 36.6 (RTS: APTK) has managed to delay the repayment of its commitments to Standard Bank until 2014, Vedomosti reported. Moreover, the company has rescheduled not only its USD 25 million debt to the bank, but also about USD 85 million issued to it by a banking syndicate on security of its 24.99% stake in Veropharm. Therefore, the drugstore network has restructured debt commitments for a total of nearly USD 110 million. The period of debt repayment has been prolonged until 1 July 2013.
In general, we are positive about the successful debt restructuring as the company’s high debt load has been one of its main risk factors.
The fair value of Pharmacy Chain 36.6 is USD 9.20 per share, which implies almost zero upsize potential. However, we expect that the news about the successful debt restructure could spur some speculative interest in the company’s securities.