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Sartorius (SRTGR: BBB): Bonds Dropping

HEALTHCARE
Early indications are:
  • SRTGR 4.375 29 +20bps
  • SRTGR 4.5 32 +25bps
  • SRTGR 4.875 35 +25bps
  • S&P raised Sartorius back to Stable outlook in Feb '24
  • The company has been making some progress in debt reduction.
  • Revenues are expected to be flat for the year rather than falling.
  • EBITDA margin compression is a clear concern.
  • Seems like a big move though.
  • BBB comp curve is Z+98 for 8yr vs z+158 for SRTGR.
  • Trading wide to BBB- WERFEN now.
See graph.


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