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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
EasyJet (Baa2 S, BBB P) is extending out € Airline cash space beyond the current 5yr mark with a new 7yr line. FV est. at +125-130bps.
- It is out this morning emphasising it has the 2nd best credit metrics among airlines (2nd to Ryanair) & competitive costs (below).
- It prices 20-30bps tighter of LHAGR's for the one-notch higher rating - LHA's longest 29's (~5.5yrs) trade at +137/€97.7, implying 107-117bps for EZJLN. For the 1.5yr term extension; broader cyclicals are flat vs. airline curves - we stick to lower-end +15bps giving FV at ~+125-130bps.
- That would leave it spread +20bps from the Heathrow (NR, BBB+ A-), +30 from equal rated FedEx - seems significant but steeper curves for Airlines is not a new phenomenon and it trades at similar spreads to existing EZJLN 28's (+23bps to Syd Airport/Baa1 there).
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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