ynas could struggle to meet a $US30 million debt repayment in September and may require another debt restructure or equity raising, according to UBS analysts.
"Lynas' lender, Sojitz, recently provided a debt extension leaving LYC's next principal repayment due 30 September 2015 (US$30m) and 21 December 2015 (US$20m), with the remaining payments in CY16 totalling a further US$155m," the analysts told clients in the wake of Lynas Corp's March quarterly cashflow report.
"In addition, the company has a US$225m convertible due July 2016. In our view, it is unlikely that Lynas will internally generate the funds needed to meet the September principal repayment."
JPMorgan analysts also pointed to Lynas' increasing balance sheet risk and downgraded the stock to "underperform" from "neutral".
JPMorgan told clients that it was highly unlikely Lynas would complete the second tranche of its 9¢ a share equity raising in September. ..........
LYC Price at posting:
4.6¢ Sentiment: Sell Disclosure: Not Held
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