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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.
TECHNOLOGY
- Upgrade reflects improved business profile, scale growth organically and through acquisition, diversification into new geographies (Spain, Turkey) and solid revenue/EBITDA growth.
- TeamSystem (TITANL) reported pro-forma EUR 803mn in revenue and EUR 315mn in adj-EBITDA for the twelve months ending Sept 23. Moody's-adj EBITDA leverage was ~6x.
- Forecasted growth over the next 12 to 18 months is expected to further improve credit metrics, with solid underlying FCF generation capacity seen >5% of debt (Moody’s-adj basis).
- Liquidity supported by EUR 37mn cash, a EUR 180mn super-senior RCF, and solid FCF generation with significant capacity against a springing net leverage covenant just under 10x.
- We see no ST maturities with the profile consists of the EUR 180mn super-senior RCF due 2027, EUR 1275mn in senior secureds due 2028 and EUR 195mn senior secureds due 2030.
- Potential upgrade triggers: sustained improvement in Moody's-adj leverage <5x, FCF/Debt towards 10%, EBITDA Coverage (less CapEx) towards 3x and adequate financial policy clarity.
- Downgrade triggers include weaker than expected revenue and EBITDA growth, leverage > 6x, weakening FCF, or deteriorating liquidity.
- TITANL secured 28s trade tighter than other similarly-rated secured tech bonds from Italian issuers (see comps below, LUTECH: B2, CERVIM/ENGIM: B3).
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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