Aroundtown (ARNDTN Snrs; NR, BBB+ Neg) {AT1 GY Equity} S&P on tender
As expected; no rating changes & views as slightly positive on 50% equity treatment kicking in for $ refi'd hybrids and extending out call risk on £ (first call in June 2024)
Says exchange fees up to €35m (last one was more significant €105m - final take-up was 74%) as manageable - we are more interested on option 2/tender take up given up to 20%/€200m cash use on this (last one was €136m on total €1.8b offerred)
Snr lines are unch to tighter today. We preferred the July 26's post-earnings on liquidity but it may not be cheapest screen anymore - curve has steepened aggressively on short-end rally (mgmt disclosed cash + signed disposals covers maturities to mid-26 at last earnings). Spread pick-up from the July 26's to Nov 26's (€300m line, liquidity thin) at +75bps & to April 27's at +120bps (all-time high since 27's issued) - real risk is unlikely to be as black and white as market pricing is between these dates.