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Linde: New Issue FV Analysis

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Linde (LIN: A2/A): Fair Value Analysis


Linde recently came to the market in Feb with EUR 2.25bn 4,7 & 12yr bonds. This curve gives a good comp for 6 & 10yrs.

Their 1% 2051 trades with a very low cash price (<58) so is not the best guide.

Recent deals for SCMNVX and MRK had 12.5->20 curve of 4bps/yr and 13->20 3.6bps

If we take 10-20yr to be fair at 3.8bp/yr then we get:

6yr IPT 85/90; FV MS+55

10yr IPT 105a; FV MS+72

20yr IPT 145a; FV MS+110

APD is the best comp for Linde in terms of business, but the curve is small.


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