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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.
CREDIT SUPPLY
- IPT given at MS+250a; we see FV around MS+205-210bps. Bond is a Sr Secured SLB in line with other EUR notes.
- TDC went to market twice in 2023 for Sr Secured LSB deals; a EUR 500mn 7y deal in January which tightened 35bps to price at MS +285bps with a cover of 4.4x while April saw a EUR 500mn 8Y deal that priced within the IPT range (MS+340-350) at MS+348bps with a NIC of ~40bps and cover of 3x.
- Future supply probably on the way; annual report in March notes expectation to prepay 2027 term facilities to be funded with EUR 0.5-1.5bn depending on market conditions and cash flow in 2024.
- Fitch affirmed IDR/Sr Secured at BB/BBB- in March. Fitch-adj leverage seen at 6x in 2024-2028 against thresholds of 5.2x/6.2x. Fitch-adj coverage of 3.9x at FY23 seen falling below 3x in 2028 against thresholds of 3x and 4x.
- They noted TDC outperforms peer CETIN with stronger fixed line services and lower fiber rollout risk, supported by existing infrastructure. Despite CETIN's stronger FCF and lower leverage, TDC NET benefits from a diverse tech base though is more exposed to obsolescence than European peers like Cellnex and INWIT which also have better operating profiles and higher leverage capacities.
- Spreads are wide for the rating, trading above those of infrastructure-heavy TMT peers like Cellnex and TDF/Tivana and more in line with names like Telecom Italia with TDC bonds not held in CSPP/PEPP. EUR spreads have traded in a range against such lines this year.
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.
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