Rallying Unigel Bonds Are a Top Pick for Lucror in Latin America
(Bloomberg) -- Unigel Participacoes SA bonds rallied to their highest level since March after the Brazilian petrochemicals maker posted better-than-expected quarterly results, Lucror Analytics said, naming it among its top picks for Latin America.
*Unigel bonds due in 2026 gained 1 cent to 92.3 cents on the dollar, according to data compiled by Bloomberg
*Yield fell to 10.49% from over 20% earlier in the year
*Quarterly earnings reported Friday showed robust cash generation
**“We believe Q2 was the turning point for Unigel’s leverage development,” Lucror analyst Soummo Mukherjee wrote in a note Tuesday
*Lucror expects Unigel to continue on a deleveraging trajectory with the following positive catalysts:
**Approval of legislation that could open “the Brazilian natural gas market and further reduce input costs for the company’s fertilizer production”
**Removal of the negative outlook by S&P
**Medium-term refinancing of the bond and a potential IPO
By Ezra Fieser