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DS Smith (BBB-): Limited Impact{SMDS LN Equity}

BASIC INDUSTRIES

• SMDSLN bondholders would prefer to see a merger with MNDILN given the rating (Baa1/A-) so a little widening here is expected.

• IP $ debt is mainly longer dated, but the curve does look a little wide by comparison.

• The deal should be credit positive for IP with synergies from the all-share deal. We should see some convergence on both sides.

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