Following Royal Commission revelations that raised some doubt on their ability to service debt (including the hybrids), the CWNHB declined ~4% this week to be now trading at $91. While we can understand the decline given the uncertainties from a regulatory sense, Crown has a very clear path over the next 6-12 months of de-gearing based on property sales alone and on UBS numbers this will bring Crown’s net debt position back to below $500m. The headlines are poor for Crown (CWN) however we continue to see value at current levels in both the stock and the Hybrid Securities, albeit noting they are higher risk.
MM remains comfortable with the Crown Hybrid (CWNHB)
Add To Hit List
