Daily Insight-Recession officially confirmed; domestic liquidity slid; FXPO eyes Eurobond, reports 9M12 results

According to unaudited 9M12 financial results disclosed by Ferrexpo (FXPO LN; US$4.08; Buy; TP US$4.48) yesterday, the company\'s EBITDA dropped 46% YoY to US$329m. In 9M12, Ferrexpo\'s revenues declined 18% to US$1.08bn, and diluted EPS dropped 57% to US$0.324 per share. As of end-9M12, Ferrexpo\'s net debt amounted to US$338m versus US$16m one year ago, and the respective net debt/LTM EBITDA ratio increased from 0.0x to 0.7x. Ferrexpo published 9M12 financial results in the course of its preparations to issue Eurobonds, with the roadshow starting today, 31 January. The company plans to use the proceeds for general corporate purposes, to reduce reliance on secured lending, and to add further liquidity. According to Bloomberg, Ferrexpo\'s assumed issue of US$500m five-year guaranteed notes was assigned a \"B (EXP)\" rating by Fitch and a \"B\" rating by Standard & Poor\'s.
Attached please find the complete report, which includes supporting charts and tables for all comments (PDF file: 12 pages, 747KB)