Investors See Positives For Aegean Despite Further Obstacles Ahead

by Ship & Bunker News Team
Tuesday June 5, 2018

Despite a troubling few days for Aegean Marine Petroleum Network [NYSE:ANW] (Aegean), during which the bunker supplier's market cap has plummeted more then 70%, some Aegean investors have remained upbeat despite seeing further obstacles ahead.

"I think Aegean is going to have to pay dearly to get its $95 million of Notes refinanced by their maturity date of November 1, 2018. I think they will need to find someone to come in on a second lien basis, with a high coupon that can be converted to equity if they go through a restructuring," Joe Farricielli, a research analyst at New York-based boutique brokerage Odeon Capital, LLC, told Ship & Bunker.

"But I can see a hedge fund doing that. IMO 2020 is only 18 months away and Aegean has a great footprint that will deliver a lot of value if they can get there. Also, the banks can't play too tough - they don't want to see the company liquidate because they risk ending up with nothing. So I do think Aegean will find the support they need."

The November bonds are currently trading for around $0.50 on the dollar, he added.

Aegean's share price today has tanked, trading as low as $0.70 after closing yesterday at $2.85, following yesterday's news that it will likely have to write off approximately $200 million of accounts receivable due to the discovery of suspect transactions.

Seaport Global analyst Kevin Sterling today was among those with a less optimistic outlook, calling the news a "crippling blow" for the firm.

Sterling sees World Fuel Services (WFS) [NYSE:INT] benefitting from Aegean's "severely weakened" position.

Ship & Bunker News Team
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