June 05, 2024 11:08 GMT
CCF Hldg AT1 Issue: We See FV Around 9.0% Area
CREDIT SUPPLY
CCF Holding (CCFHLD: BB+ neg) is issuing AT1 with IPT at 9.5% area, we see fair value around MS+610bp which translates back to around 9.0% area.
- CCF (entity behind “The Money Group” trading name, not to be confused with Credit Commercial de France, HSBC’s old French business, now owned by Cerberus) is issuing EUR225m of AT1 PerpNC5.5 with IPT at 9.5% area. Books are above EUR300m and the expected rating is B-.
- Using an interpolated EUR swap rate of 2.855%, that IPT translates to MS+665bp. The lower end of Tier 2 world (B+ and below) has two main groupings: some bid targets (BPER, BPM, largely) and then a more obvious group of lower-rated issuers with a curve that has about 20bp per year of term structure. Putting that onto the adjacent Bank of Cyprus bond (BOCHLN 11.875%) at MS+581bp at 1.5yrs shorter workout gives a fair value around MS+610bp, in our view.
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