January 22, 2025 12:45 GMT
CONSUMER STAPLES: Sudzucker; 7Y FINAL
CONSUMER STAPLES
(SZUGR; Baa2 Neg/BBB Neg)
We will record the full -25 negative NIC but we can understand why investors are attempting to look ahead. Our FV was floored by the fact that near term catalyst still look negative (though highly uncertain on sugar prices) and if so history (based on 25s) does imply below could move >+200. €IG index was a few bps tighter in 2019 when that sell-off happened - but yields much lower/against negative swap rates.
- WNG €500m 7Y +185 vs. FV +210 (-25 through)
- books >€3.3b, -40 in from IPT
- 1k/retail denominations
- UoP refi for €500m Nov line
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