CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

CAPITAL GOODS: Rexel (RLXFP Ba1/BB+/NR): QXO Bid

CAPITAL GOODS
BulletCredit Bullets
  • RXLFP is higher today on news of a rejected bid from QXO. Equity takes are rather unanimous in saying the bid undervalues the company. QXO isn’t planning another bid according to Reuters.
  • RLXFP bonds are quoted 30-110c higher this morning, with the lower cash price bonds outperforming. By our calculations a fully cash/debt funded takeover at €28.40 / share would push leverage of the combined group slightly above that of Rexel, pre-synergies.
  • QXO is unrated with no public debt. RLXFP bonds have a 101 CoC clause which could be triggered if bonds are downgraded, or ratings withdrawn on a takeover.
  • The market could also be pricing the prospect of other buyers emerging. The probability of a takeover seems low at this point. In the event, moving parts including funding and ratings impact leave uncertain outcomes for bondholders.
134 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.
  • RXLFP is higher today on news of a rejected bid from QXO. Equity takes are rather unanimous in saying the bid undervalues the company. QXO isn’t planning another bid according to Reuters.
  • RLXFP bonds are quoted 30-110c higher this morning, with the lower cash price bonds outperforming. By our calculations a fully cash/debt funded takeover at €28.40 / share would push leverage of the combined group slightly above that of Rexel, pre-synergies.
  • QXO is unrated with no public debt. RLXFP bonds have a 101 CoC clause which could be triggered if bonds are downgraded, or ratings withdrawn on a takeover.
  • The market could also be pricing the prospect of other buyers emerging. The probability of a takeover seems low at this point. In the event, moving parts including funding and ratings impact leave uncertain outcomes for bondholders.