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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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New Profile: Ba3[N]/B+S]/BB-[N] (S&P downgraded on 02 Feb)
- Moody’s-adj. debt/EBITDA expected to remain high at around 5.2x in 2024 on adj-EBITDA guidance lowered from EUR 725-825mn to EUR 650-680mn, with a slight decrease to 4.7x by 2026 though remaining >4.25x for an extended period (the maximum leverage for Ba2).
- FCF seen in negative territory out to 2027 on OneWeb's planned Gen-2 capex, limiting management’s scope to hit it’s 3x leverage target (3.35x at FY23 in June).
- They note the need to address refinancing of the €800mn Oct 25 bond given access to bank credit facilities is restricted by net leverage covenants while new debt will be required to fund growth CapEx.
- Eutelsat bonds are streaming 10-20c lower DoD, having sold-off by up to EUR 6.27 YTD in their 2028 line (now streaming at EUR 69.07).
- Underperformance against similarly classified bonds continues (see below chart based on HY EUR bonds with BCLASS L4 of Cable Satellite)
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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