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Rentokil (RTOLN; BBB/BBB) PE Takeover rumoured

CONSUMER CYCLICALS

Equities are being bid up (+11%) on the following article from the Times rumouring former BT boss, Philip Jansen, is working with PE firms for a takeover (here). Rentokil came in focus (& equities similarly bid) last month as well after activist fund Trian led by Peltz took a stake in it.


This one could be more of a mover/event risk for bonds given all have CoC at par. Note the €24s, €26s and €28s have a +125bp coupon-step up on downgrade into HY as well. This is NOT on the new €27, €30s or the £32s (which are trading above or close to ).


Step up "means the first public announcement by S&P or an Additional Rating Agency of a decrease in the credit rating of Rentokil Initial’s senior unsecured long-term debt to below BBB- (in the case of S&P) or below a rating equivalent to BBB- (in the case of an Additional Rating Agency)." Agency)."



28s below are being bid in this morning.


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