Montevideo Carrasco Airport
Investment evaluation
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Name
Purchase date
ISIN
Status as of today
Species
Quantity
Currency
Current investment volume
Profit/Loss in %
11/09/2020
8/24/2021
Montevideo Carrasco Airport
Parent company Corporacion America Airports SA operates a network of 52 airports worldwide, making it the largest airport operator. The number of passengers transported in 2019 was 84 million.
Uruguay's main and only major airport is located about 18 kilometers east of the capital Montevideo and is home to the airline ALAS Uruguay . From the airport, flights are mainly to neighboring countries, but also to Madrid, Miami or Paris.
The terminal is modern and has a very interesting architectural design. It is fully sufficient for the number of connections and is comfortably spacious even at peak times. Opening hours are 24 hours a day.
Complete information
Issuer
ACI Airport Sudamerica SA
The name of the issue
ACI Airport Sudamerica, 6.875% 29Nov2032
Currency
US dollar $
Emission volume
200,000,000 USD
The face value of the bond
1000 USD
Indicative market price
$750
Discount
250 USD
Coupon from face value
6.875% p.a
Coupon payout frequency
Due date
Quarterly payment
29/11/2032
100% liquidity
Yes
Minimum volume
$200,000
Yield to Maturity
10.56% pa - before taking into account all costs
Preferred scenario
38.28% pa - before taking into account all costs
Rating
BB+
Hierarchy of debt
Senior secured
You can find the prospectus for the bonds here:
6.875% Senior Secured Guaranteed Notes due 2032 - Prospectus
Rating
The Fitch rating agency reacted to Covid-19 first by lowering the rating to BB (still a notch above the company Sazka as), then they moved the company up a notch again, on 29.5.2020 to BB+ rating . Before the pandemic, the company enjoyed a BBB- rating, i.e. it fell into the highest debt band with the lowest level of risk and the possibility to almost rule out non-payment of the bond. We expect it to regain this rating once it starts flying more (2021).
Hierarchy of debt
Debt is senior secured and in addition in class 1st lien . In the event of company bankruptcy, it is the first to be paid in full. Even so, we do not expect any decline.
Possibility of early convening
The bond has the possibility of early call by the issuer at the prices shown in the table below. The yield in 2022 would thus even reach 23.7% pa from purchase to its call.
Bond summary
The bond was trading at $1100 (110% of face value) before Covid-19, we are currently able to get it around $780. We believe the debt is undervalued and expect the price to rise back to $1050 (+34% appreciation + coupon).
After the so far very successful "travel" series of bonds (easyJet, MTU Aero Engines, Royal Caribbean, United Airlines, AeroDos), we are still looking for imbalances in the debt market where interesting results can be achieved while taking a lower risk than is usual for such returns.