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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.
CONSUMER CYCLICALS
We take off the screen cheap on new 3NC2 27s. It priced at par/4.5%/Z+140 with 20bp NIC. BVAL bid side is €100.88 or to maturity 4.2%/Z+110. We still have no issue with 27s here for carry but prefer the existing screen cheap Coty 28s. We are not sure why its struggling to move tighter than the 27s - all outcomes are cheaper (even to '28/maturity vs. Dufry) - see below.
- Shorter Dufry 27s offers +10bp pickup (mids) at lower cash px of €94.3 - that screens (some) relative value. Our screen cheap was on the 28s for Dufry curve but it has come in 20bps since (on spread) and 27/28s is starting to look tad flat - both trade mid 90s on px.
- Reminder we see Coty completing most of gross deleveraging/paydowns on front unsecured and '26 secured wall. If it still has room after that we expect the 28s to be taken down first (+125bps higher coupon) - call structure starts in Sept next yr (at €102.9), it trades at €104.4.
- Docs look similar; both have covenant expiry on IG ratings (from 2 of 3 agencies) - that includes notes shifting to unsecured on guarantees being terminated. Both have CoC at €101.
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.
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