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Royal Schiphol (LUCSHI; A2/A Pos) FV

TRANSPORTATION

exp. €500m 12Y IPT MS+140/145 vs. FV 110 (-30)

    • Amsterdam, Rotterdam, Lelystad and Eindhoven Airports.
    • First issuance since April 2021, 100k

We will have to follow-up on fundamentals but we see no evidence of shorter lines commanding a premium over higher rated Norwegian state-owned operator Avinor (A1). Avinor new 34s trade at Z+95 - we have spread Luschi 15bps for a 2.5yr term extension (high-grade airports). The cross-check is Sydney Airports (Baa1/BBB+) new 36s who for the 2-notches gives 30bps. Lucshi's own curve is skewed by legacy low cash px lines.

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exp. €500m 12Y IPT MS+140/145 vs. FV 110 (-30)

    • Amsterdam, Rotterdam, Lelystad and Eindhoven Airports.
    • First issuance since April 2021, 100k

We will have to follow-up on fundamentals but we see no evidence of shorter lines commanding a premium over higher rated Norwegian state-owned operator Avinor (A1). Avinor new 34s trade at Z+95 - we have spread Luschi 15bps for a 2.5yr term extension (high-grade airports). The cross-check is Sydney Airports (Baa1/BBB+) new 36s who for the 2-notches gives 30bps. Lucshi's own curve is skewed by legacy low cash px lines.

Keep reading...Show less