May 24, 2024 09:16 GMT
Industrials: New Issue Performance
BASIC INDUSTRIES
• The largest NICs we saw this week came from AMCR 3.95 32 (13bp) and HOTGR 4.25 30 (20bp).
• AMCR is quoted 6bp inside reoffer at B+154 bid.
• HOTGR however is not performing, 2bp wide to reoffer at B+177 bid despite one of the largest book covers at 4.2x.
• Leaves HOTGR curve looking steep, but as we noted in our FV HOTGR 29s are a low coupon €500mn deal, likely illiquid and may not reflect true pricing of risk for this credit. A tricky industry, complex parent group structure and lack of traded comparables also count against the name.
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