Description
Capital Mix
In this chapter we will examine the capital structure of Cellnex and how is has evolved since the 2015 IPO.
Capitalization, Coverage ratios, CFS
The capital structure of Cellnex can be described as standard. They employ a mixture of equity, bonds and credit facilities to finance their operations and investments. In table 1 we can track the changes in the capitalization of Cellnex over the past four years.
Year 2014 2015 2016 2017
Equity € 501.39 € 3,994.22 € 3,165.95 € 4,946.44 Bonds € - € 599.74 € 1,410.47 € 1,898.62 Loans € 421.44 € 378.20 € 281.84 € 633.19
Total LT Debt € 421.44 € 977.94 …show more content…
ST Debt € 11.72 € 10.42 € 9.39 € 3.30 Cash € (90.89) € (51.00) € (192.85) € (295.17)
Total Debt € 342.26 € 937.36 € 1,508.84 € 2,239.94
Total Capital € 843.65 € 4,931.57 € 4,674.79 € …show more content…
Their present or future leverage could have significant negative consequences. Firstly, their indebtedness could place them at a competitive disadvantage compared to less leveraged competitors and competitors that may have better access to capital resources. This could lead to Cellnex having to forego important acquisitions or certain business opportunities. Secondly, their indebtedness could lead to requiring the dedication of a substantial portion of cash flow from operations to service debt, thereby reducing the amount of cash flow available for other purposes, including, among others, Capex and dividends. A third negative side effect could be that their excessive leverage leads Cellnex to issue debt or equity securities or to sell some of its core assets, possibly not on the best terms, to meet payment obligations. Fourth, Cellnex might have to accept financial covenants in their financing contracts such as: debt limitation, cash restriction, or pledges of assets. Finally, their indebtedness could lead to a potential downgrade from a rating agency, which can make obtaining new financing more difficult and
Capital Mix
In this chapter we will examine the capital structure of Cellnex and how is has evolved since the 2015 IPO.
Capitalization, Coverage ratios, CFS
The capital structure of Cellnex can be described as standard. They employ a mixture of equity, bonds and credit facilities to finance their operations and investments. In table 1 we can track the changes in the capitalization of Cellnex over the past four years.
Year 2014 2015 2016 2017
Equity € 501.39 € 3,994.22 € 3,165.95 € 4,946.44 Bonds € - € 599.74 € 1,410.47 € 1,898.62 Loans € 421.44 € 378.20 € 281.84 € 633.19
Total LT Debt € 421.44 € 977.94 …show more content…
ST Debt € 11.72 € 10.42 € 9.39 € 3.30 Cash € (90.89) € (51.00) € (192.85) € (295.17)
Total Debt € 342.26 € 937.36 € 1,508.84 € 2,239.94
Total Capital € 843.65 € 4,931.57 € 4,674.79 € …show more content…
Their present or future leverage could have significant negative consequences. Firstly, their indebtedness could place them at a competitive disadvantage compared to less leveraged competitors and competitors that may have better access to capital resources. This could lead to Cellnex having to forego important acquisitions or certain business opportunities. Secondly, their indebtedness could lead to requiring the dedication of a substantial portion of cash flow from operations to service debt, thereby reducing the amount of cash flow available for other purposes, including, among others, Capex and dividends. A third negative side effect could be that their excessive leverage leads Cellnex to issue debt or equity securities or to sell some of its core assets, possibly not on the best terms, to meet payment obligations. Fourth, Cellnex might have to accept financial covenants in their financing contracts such as: debt limitation, cash restriction, or pledges of assets. Finally, their indebtedness could lead to a potential downgrade from a rating agency, which can make obtaining new financing more difficult and