September 25, 2024 12:35 GMT
Bunzl (BNZLLN; NR/BBB+ Stable) 7.5Y Guidance
CONSUMER STAPLES
WNG €500m 7.5Y Guidance MS+120a vs. FV +100 (20bp NIC)
- -25 in from IPT, books>€1.9b are in-line metrics. The NIC above will be driven by it not getting the sterling treatment on its first issuance here. No firm view from us - if it was giving similar NIC on 5Y we would.
- 3m par call, CoC at par.
- First time in euros; £30s/6Y trades tight at T+96 (-10 through Tesco, both on low cash px) and swaps back to Z+94.
- FV is based on secondary - given Bunzl Sterling does trade tighter on the higher rating (& margins) vs. Tesco we spread it 10bps inside here as well.
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