May 23, 2024 07:51 GMT
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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