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CREDIT SUPPLY: EDF (HYB: Ba2 / B+ pos / BBB-): Hybrids FV

CREDIT SUPPLY
  • IPT: NC5.25 5.75%; FV 5.25%
  • IPT: NC8 6.125%; FV 5.625%
  • NC5.25 Sub-Sen +200 bps; Sen +90bps; MS 2.35% = 5.25%
  • NC8 Sub_Sen +210bps; Sen +115bps; MS2.38% = 5.625%

EDF 3.375% Call Jun30 trades with Sub_Sen +201 bps. This has a low cash price and arguably Sub_Sen is better reflected with the recently issued 7.5% Call28 which has Sub_Sen +177bps. But, investors will not ignore the 5.21% yield on this - I think it sets something of a floor. Moreover, the Reset is EUSA5 +397 which is above current levels by +100bps.

SESGFP recently priced 0.375% apart for 2 hybrids

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