Free Trial

Tapestry (TPR; Baa2/BBB; double Neg) D-Day

CONSUMER CYCLICALS

It's D-Day for Tapestry vs. FTC as it goes to court today. It's expected to last under two weeks, updated pricing below. We've excluded the €25s given we are hearing it's not trading. For those on the side-lines, please be aware of the 101 call risk on the three lines - offer side may jump towards €101 on court updates and will look very cheap on spread.

Probability priced of beating FTC and closing on the $8.5b acquisition of Capri;

  • €27s; 60%
  • €31s; 42%
  • Capri equities; 42%
    • (the two 42%s are not a typo)
We price FV on close to a 1-notch downgrade/Baa3 ratings and account for step-up protections in HY (25bps/notch at Moody's and S&P up to max 200bps).

To read the full story

Close

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.