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Coca-Cola FV (EUR 500mn WNG 13Y, EUR 500mn WNG 29Y; A1/A+)

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A1/A+ EUR Spreads 3-4bps wider across the curve

  • IPT given at MS +125, MS+185bps; short-end is clear-cut enough, we see FV at MS+75-80bps. Long-end IPT looks wide to us even accounting for low cash prices across most of the curve; we see FV in the region of MS+120a though attach a wider confidence interval here given the tenor and lack of comps.
  • Coca-Cola last came to market in a dual-trance 8y/20y deal in early May which saw tightening of 32.5bp/34.5bp to price at MS +50bps/93bps with NIC’s 2bps tight of our FVs on both lines with covers of 3.5x and 4.3x.
  • Coca-Cola was in the USD market yesterday in a triple-tranche 10Y/30Y/40Y (40y being a tap) that tightened by 35bp/35bp/30bp to price at UKT + 70bp/95bp/110bp. Use of proceeds there, like here, includes ongoing tax litigation with the IRS.

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A1/A+ EUR Spreads 3-4bps wider across the curve

  • IPT given at MS +125, MS+185bps; short-end is clear-cut enough, we see FV at MS+75-80bps. Long-end IPT looks wide to us even accounting for low cash prices across most of the curve; we see FV in the region of MS+120a though attach a wider confidence interval here given the tenor and lack of comps.
  • Coca-Cola last came to market in a dual-trance 8y/20y deal in early May which saw tightening of 32.5bp/34.5bp to price at MS +50bps/93bps with NIC’s 2bps tight of our FVs on both lines with covers of 3.5x and 4.3x.
  • Coca-Cola was in the USD market yesterday in a triple-tranche 10Y/30Y/40Y (40y being a tap) that tightened by 35bp/35bp/30bp to price at UKT + 70bp/95bp/110bp. Use of proceeds there, like here, includes ongoing tax litigation with the IRS.