May 17, 2024 13:46 GMT
Iberdrola (IBESM Baa1/BBB+/BBB+): Avangrid Deal
UTILITIES
• Reuters reports a deal is imminent for Iberdrola to buy the 18.4% stake in Avangrid that it doesn’t already own for around $2.6bn.
• $2.6bn represents ~0.2x turns of leverage, so no meaningful credit impact. We could see funding supply, however.
• Spreads widened slightly on news of the initial offer back in March, but IBESM remains the tightest curve in the high triple B utilities universe.
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