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Alstom Hybrid:  PerpNC5.25

CREDIT SUPPLY

Alstom Perp (ALOFP: Ba2 Hybrid)

*IPT: ALSTOM €750M WNG PNC5.25 HYBRID 6.75% AREA


With ALOFP 0.5 30 senior trading ms+109

5.25yr Swap = 2.855%

The IPT Senior-Sub is +280bps

Sen-Sub comps: Bayer trades +224; TELEFO +168; EDF +176


  • While the businesses are not directly comparable ALOFP seniors trade in between BAYNGR and TELEFO, closer to Bayer.
  • Alstom does not currently have an S&P rating which is a concern for some we have spoken to.
  • Something closer to +200 Sen-Sub should be reasonable though which would put the coupon at 5.95%

The consensus opinion though is that the new issue can't reprice that far inside IPT so 6.25% might be the more likely level.

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