Kernel Group refinances USD 45 mln loan

Kernel Group (KER PW) announced on Friday on the Warsaw Stock Exchange that it refinanced a USD 17 mln loan from a Ukrainian branch of a European bank. Kernel said it took out the initial loan in September 2008 to bolster working capital. Andriy Gostik: The company’s financial debt as at the end of March of 2009 totaled USD 281.5 mln, net debt amounted to USD 157.5 mln and its fin debt/equity ratio on that date came to only 0.9. At the same time, its EBITDA/Net interest ratio was 9.2 for January-March and 5.5 for the nine months of the current financial year (July 2008-March 2009). These figures suggest that Kernel’s financial position is rather healthy, and whatever the reason for the refinancing of the USD 17 mln loan is, this news adds little to the perception of the company as a financially stable and solvent entity.