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Boels New Issue (Ba3/BB): Pricing Thoughts

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• PRICE TALK: Boels EU500m 6NC2 Sr Sec 5.75%/6%. IPT: 6% Area.

• Should trade well wide to recent Dufry; 1 notch worse, less attractive business profile, higher leverage. NC2 structure is less favourable to investors.

• We note that BOELST 6.25 29 trades almost 100bp wide vs DUFNSW 27 for the same duration and would expect a similar pickup for the new issue. Looking at recent DUFNSW 4.75 31 at OAS 186, that gets us to 300bp for the new BOELST.

• That would put valuation around 5.75% as a yield floor.

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