LXU 9⅝ 05/01/23

LSB Industries Inc.

Credit, Industrial/Transportation


Presented:06/11/2018
Price:N/A
Cap:N/A
Current Price:$9.25
Cap:N/A

Presented

Date06/11/2018
PriceN/A
Market CapN/A
Ent ValueN/A
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/SN/A
Ave Daily VolN/A
Short IntN/A

Current

Price$9.25
Market CapN/A

Publicly traded companies mentioned herein: LSB Industries Inc (LXU), OCI Partners LP (OCIP)

Highlights

The presenter is long LSB Industries’ 9⅝ corporate bond at ~102. It is the only bond in the capital structure, and has 1st lien on PP&E, and 2nd on working capital. The nitrogen products producer’s business is half fertilizers, and half industrial nitrogen. The bullish view on the bond is based on operating reliability, not cyclicality; however, an improvement in the nitrogen cycle could provide optionality. LSB generated $44MM of EBITDA in 2017 while one of its plants was running at an on-stream rate of just 22%, and with early 2018 results suggesting a return to consistent, high operating rates, the presenter believes the YTW can decline from ~8.85%.

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Idea Discussion

Commentor 1 - 2 weeks ago

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