MNI BRIEF: Canadians Fuzzy On How BOC Hikes Slow CPI, Government's Role

CANADA FLASH MAY GDP +0.1% ON FACTORIES AND REAL ESTATE

MNI China Daily Summary: Friday, June 28

MNI BRIEF: BCB Evaluating Real Depreciation Impacts - Galipolo

MNI BRIEF: PBOC Pledges to Curb Any Overshoot Of The Yuan: MPC

MNI: PBOC Net Injects CNY40 Bln Via OMO Fri; Rates Unchanged

MNI: BAKER HUGHES US RIG COUNT 581; OIL RIGS 479; GAS RIGS 97

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: BoE APF on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Birkenstock (BIRKEN; NR/B/BB)

CONSUMER CYCLICALS
Credit BulletsBulletHomepagemarkets-real-timeCredit
  • €29s on BVAL offer side are at 4.6%/Z+118 to worst in 2yrs & 5.0%/Z+196 to maturity in 5yrs. May be temping on headlines today, we don't have much colour to add on par-call chance in '26 (screens cheap for those that do). New Finnair 29s at Z+204/5.1% that has similar single name risk screens more value to maturity on government support (4-notch higher on bond ratings) but came with only 3m par-call. Note S&P standalone ratings are equal for the two.
  • S&P seems to be lagging here in single B territory in part on IPO linked deleveraging changing BS rapidly. It wants to wait and see if that was one-off or if mgmt stays conservative & works towards stated net 2x within ~1yr & 1x over long-term. In particular its flagging original PE owners, Catterton, still holds controlling stake of 80%.
  • Net leverage (see link below) is now at 2.6x, revised FY EBITDA guidance (Mid-point €540m) will take 0.2x off, remaining only requires €220m reduction.
  • Its only other debt outside the €430m 5.25% bond is €175m in leases & €680m in 2028 term loans (split across $ and €) - repayments on these have been prioritised thus far (took down bulk of the $ loan last year). Refi to cheaper debt in 2yrs when par call kicks in is a distinct possibility & is to worst on yields.
  • The risks are significant on single brand & product type (70% of sales from 5 core models). Though EBITDA margins run in low 30%s, cash conversion is not great on FCF at €145m last yr against revenue of €1.5b and EBITDA of €480m; leaves FCF/gross debt at ~10%.

Keep reading...Show less
278 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • €29s on BVAL offer side are at 4.6%/Z+118 to worst in 2yrs & 5.0%/Z+196 to maturity in 5yrs. May be temping on headlines today, we don't have much colour to add on par-call chance in '26 (screens cheap for those that do). New Finnair 29s at Z+204/5.1% that has similar single name risk screens more value to maturity on government support (4-notch higher on bond ratings) but came with only 3m par-call. Note S&P standalone ratings are equal for the two.
  • S&P seems to be lagging here in single B territory in part on IPO linked deleveraging changing BS rapidly. It wants to wait and see if that was one-off or if mgmt stays conservative & works towards stated net 2x within ~1yr & 1x over long-term. In particular its flagging original PE owners, Catterton, still holds controlling stake of 80%.
  • Net leverage (see link below) is now at 2.6x, revised FY EBITDA guidance (Mid-point €540m) will take 0.2x off, remaining only requires €220m reduction.
  • Its only other debt outside the €430m 5.25% bond is €175m in leases & €680m in 2028 term loans (split across $ and €) - repayments on these have been prioritised thus far (took down bulk of the $ loan last year). Refi to cheaper debt in 2yrs when par call kicks in is a distinct possibility & is to worst on yields.
  • The risks are significant on single brand & product type (70% of sales from 5 core models). Though EBITDA margins run in low 30%s, cash conversion is not great on FCF at €145m last yr against revenue of €1.5b and EBITDA of €480m; leaves FCF/gross debt at ~10%.

Keep reading...Show less