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APRR (Societe des Autoroutes Paris-Rhin-Rhone-APRR) (APRRFP; NR/A-/A) 9Y FV

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  • WNG €500m 9.3Y IPT +125-30 vs. FV 85 (-40)
    • Spread 15bps for 4Y extension from the 30s (the last issuance; May 2023)
    • We have no firm view on this curve - please see important asides below though
  • French toll operator; 31% owned by {Atlas Alteria; ALX AU Equity} (Baa2/BB-Neg/BB-) with remaining majority held by {Eiffage; FGR FP Equity} (NR/A-/A).
  • 1H traffic was down -0.9% while toll revenues +3.2% on contractual tariff increases. APRR carries €6.7b of net debt against circa €1.1b in EBTIDA.
  • Note parent Eiffage has flagged the French draft finance bill which includes new tax on long-distance transport infrastructure would impact APRR bottom line; court recently said it was constitutional after challenges against it. Analyst say Vinci and Eiffage will continue challenging the decision in courts and past comments from Eiffage indic. of that.
  • Fitch sees "restrictions in the shareholders' agreement, namely changes to the business plan and dividend policy, materially limiting Eiffage's access to APRR's cash flow" and therefore rates APRR on standalone basis only capping it if rating moves +2 notches to Effiage.

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  • WNG €500m 9.3Y IPT +125-30 vs. FV 85 (-40)
    • Spread 15bps for 4Y extension from the 30s (the last issuance; May 2023)
    • We have no firm view on this curve - please see important asides below though
  • French toll operator; 31% owned by {Atlas Alteria; ALX AU Equity} (Baa2/BB-Neg/BB-) with remaining majority held by {Eiffage; FGR FP Equity} (NR/A-/A).
  • 1H traffic was down -0.9% while toll revenues +3.2% on contractual tariff increases. APRR carries €6.7b of net debt against circa €1.1b in EBTIDA.
  • Note parent Eiffage has flagged the French draft finance bill which includes new tax on long-distance transport infrastructure would impact APRR bottom line; court recently said it was constitutional after challenges against it. Analyst say Vinci and Eiffage will continue challenging the decision in courts and past comments from Eiffage indic. of that.
  • Fitch sees "restrictions in the shareholders' agreement, namely changes to the business plan and dividend policy, materially limiting Eiffage's access to APRR's cash flow" and therefore rates APRR on standalone basis only capping it if rating moves +2 notches to Effiage.