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Hochtief (BBB-): New Issue FV Analysis

CREDIT SUPPLY
  • *IPT: HOCHTIEF EXP. €500M 6Y MS+180 AREA.
  • We see FV at MS+120-125a.
  • While HOTGR secondary trades in line with the likes of STERV (Baa3/NR/BBB-), bonds are low coupon, €500mn deals issued in the last cycle. We see a 10-15bp discount as reasonable, which would put this close to recently issued SOLBBB curve (BBB-).

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  • *IPT: HOCHTIEF EXP. €500M 6Y MS+180 AREA.
  • We see FV at MS+120-125a.
  • While HOTGR secondary trades in line with the likes of STERV (Baa3/NR/BBB-), bonds are low coupon, €500mn deals issued in the last cycle. We see a 10-15bp discount as reasonable, which would put this close to recently issued SOLBBB curve (BBB-).