Kernel secures USD 230 mln in PXF facility

Ukraine’s largest sunflower oil producer Kernel (KER PW) reported Aug. 19, it had renewed its pre-export credit facility (PXF) with a syndicate of European banks. The facility with a limit of USD 230 mln will be targeted to finance the company’s working capital needs. According to Debtwire report, Kernel initially targeted to raise USD 280 mln in PXF during this round of refinancing. 

In mid-June Kernel secured USD 65 mln in one-year credit facility with a syndicate of European banks for working capital purposes as well.

Roman Topolyuk: Kernel proves to remain one of the few corporate borrowers in Ukraine capable to refinance its PXF facilities during virtually closed debt market for Ukraine. As of March 2015, Kernel had USD 377 mln in short-term debt, USD 281 mln of which was scheduled for redemption by the end of 2015. The company also had around USD 269 mln in undrawn credit facilities, as of end-March 2015.

Kernel enjoys ample liquidity due to reduced capital spending and solid performance of its business segments across the board. The company is on track to deleverage itself. We estimate Kernel will report net debt of USD 425 mln as of end-June 2015, down from USD 482 mln as of end-March, according to our projections. We reiterate our bullish view on Kernel stock.