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.
- Bmrk €4Y IPT MS+100a vs. FV +72
- Bmrk £9Y IPT UKT+115a (eqv. 4.84% or MS+142) vs. FV MS+120 (eqv. 4.62% or UKT Bmrk +93)
- UKT spreads are over the 0.875% July 33s Gilt
- CoC at par, 3m par call - on both
- Reckitt is the closest comp (in both regions) - similar sized, tad lower margins but lower levered and hence higher rated. It's curve is bagged by overhanging NEC lawsuits risk (drawn out process likely). We have no issue with Haledon secondary - and hence FV - sitting tighter than it. Low cash px lines in £ causes us to shift tad wide of secondary there.
When we liked the €30s on RV we didn't get much feedback - only material concern was the carryover from GSK's Zantac exposure. When it was split from {GSK LN Equity} it made clear it did not see any links to the liability there, see this.
Perhaps it is the lack of investor awareness - co has had to do a roadshow over the last two days despite ratings/bonds outstanding. Summary is; €13b in sales co and parent of a consumer health brands including Advil, Centrium & Voltaren. 28% in oral health, 23% in pain relief, 19% in Digestive, 15% in respiratory and 15% in VMS (vitamins, minerals and supplements). Well diversified across the globe. 1H results were firm; organic sales +3.5% on pricing +4.3%, adj. EBIT margin of 22.7% up net 50bps yoy and net levered 2.9x vs. target "around 2.5x" - it has been successfully deleveraging from a peak 4x post-GSK split. FY guidance is for organic sales growth in +4-6% range (c+5%) and organic EBIT growth in HSD (c+8% on organic and net +1.6%).
Re. when it might return to primary; it has £1.4b due in $ debt next year but it is pre-funding that in part today. After that it has the €850m March 26s.
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.