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International Workplace Plc (IWGLN: BBB): New Issue

REAL ESTATE

Investors have questioned Fitch's methodology for rating IWG at Mid BBB.

  • IPT €Benchmark MS+387.5/400
  • Clearly, the IPTs reflect some scepticism as to the treatment of Lease obligations and the extent to which they are truly remote from the company.
  • If you are satisfied with Fitch's approach - that this is basically a service company with low leverage - then the new issue IPT's are very cheap.
  • The shakier end of the property space - HEIBOS, CITCON - trades in the mid 300s Z spread
  • IPTs are +100 wide to Balder, ARNDTN.
I assume that IPTs reflect a robust set of conversations with investors.

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