November 25, 2024 12:18 GMT
CONSUMER CYCLICALS: Flutter; 29s continue run-in
CONSUMER CYCLICALS
(Secured 29s; Ba1/BBB- Pos/BBB)
As we said when FDJ priced 'flutter 29s in secondary and/or eventual Flutter supply looks significantly more attractive for fundamentals'. Its -15bps since on reported buying (FDJ 30s -1, €IG -1) and looks fair here (Coty 27s giving pick-up over it now).
Reminder we are waiting for potential ~€2.5b in refi-supply for a bridge loan it has taken out for recent acquisitions (exp. close 2Q). It is likely to be split across $ and €s keeping in mind primarily listing now in US and reporting currency moved from £ to $s. Based on FDJ and IGT's recent pricing, we don't see why Flutter would struggle if it brings some of that here.
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