Aeropuertos Dominicanos Siglo
Investment evaluation
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+18.28%
Evaluation in 4 months
Aeropuertos Dominicanos Siglo
The company operates a network of 6 airports in the Dominican Republic. It belongs 100% to the Vinci Airports holding, which operates a total of 46 airports in the world.
Complete information
Issuer
Aeropuertos Dominicanos Siglo XXI SA
The name of the issue
Aerodome, 6.75% 30mar2029
Currency
US dollar $
Emission volume
317,000,000 USD
The face value of the bond
1000 USD
Indicative market price
$880 USD
Discount
120 USD
Coupon from face value
6.75% p.a
Coupon payout frequency
Due date
Quarterly payment
30.3.2029
100% liquidity
Yes
Minimum volume
$200,000
Yield to Maturity
9.17% pa - before taking into account all costs
Preferred scenario
20.41% pa - before taking into account all costs
Rating
B+
Hierarchy of debt
Senior Secured & First Lien
You can find the prospectus for the bonds here:
6.750% Senior Secured Notes due 2029 - Prospectus
Management
As can be seen in the picture below, the company will not be making a loss this year either. On the contrary, it should manage with a profit of USD 1.925 billion. Next year already with a profit of 3.5 billion USD.
The company's profit has been growing continuously since 1997, even in the crisis years of 2008-2009 it was not at a loss (both years approx. +1.5 billion USD).
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.
Bond summary
The bond was trading at $1100 (110% of face value) before Covid-19, we are currently able to get it around $890. Considering that this year too, the company will make a profit of 1.9 billion USD and the Dominican Republic will continue to be a very interesting vacation destination. We believe the debt is undervalued and expect the price to rise back to $1050.
After a very successful "traveler series" of bonds (easJet, MTU Aeroengines, Royal Caribbean, United Airlines), we are still looking for imbalances in the debt market where interesting results can be achieved while taking lower risk than is usual for such returns.