MSU
⚠️ MSU Energy’s bonds have been impacted by contagion from other defaults (like Gems/Albanesi) due to similarities in sector and leverage, leading to significant price drops.
🧐 Despite current stress and high debt, MSU Energy recently refinanced debt and shows a trend of quarterly net debt reduction, operating as a cash-generating power plant with gas supplied by CAMMESA.
📊 Investing in MSU’s bonds is presented as a potential opportunity for high returns but requires thorough due diligence on its financials and debt repayment capacity given its distressed situation.
@ClaveBursatilTV:
“I think there might be some contagion in a company called MSU, which has a somewhat similar story—it’s a generator as well, in the same sector, and it also started out quite leveraged… MSU comes to mind, which is perhaps a similar example to Albanesi due to its history and because it has also been hit hard these days… It requires sitting down, working with the financial statements, projecting forward, and seeing what its repayment capacity looks like and if the numbers add up… MSU, for example, refinanced its debt a short while ago. And although it’s coming from a somewhat stressful situation, meaning it has a lot of debt and so on, if you look at its quarterly performance, its net debt has been decreasing quarter by quarter. So, as long as its maturity approaches, it gets a rollover, and it continues to generate—after all, a generator is a plant that generates electricity with gas, which CAMMESA supplies to it even today, so it doesn’t even buy the gas—it’s a cash-flow generating machine.”
Watch the exact part of the video where Juani from SBS, interviewed on Clave Bursátil TV, talks about MSU Energy here:
Watch the video on YouTube
Read more articles by the world’s top analysts on MSU Energy (MSU) at the following link. MSU stock.
