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Campari Group (CPRIM: unrated) €27s weak - we see value

CONSUMER CYCLICALS

€27s +7 today at Z+135/B+170/3.65%.

Fundamentals for the 3 spirit players below; 1) the higher capex combined with recent M&A spend is mainly coming out of cash that peers are sending to equity holders 2) the leverage bump was after a €1.2b acquisition in April and though it has no explicit target it has generally run BS in mid 2x or lower (currently reporting net 3.5x) 3) public equities (qtrly results, large analyst coverage) leaves us with less reason to price a unrated discount.

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€27s +7 today at Z+135/B+170/3.65%.

Fundamentals for the 3 spirit players below; 1) the higher capex combined with recent M&A spend is mainly coming out of cash that peers are sending to equity holders 2) the leverage bump was after a €1.2b acquisition in April and though it has no explicit target it has generally run BS in mid 2x or lower (currently reporting net 3.5x) 3) public equities (qtrly results, large analyst coverage) leaves us with less reason to price a unrated discount.

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