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TenneT (A3/A-): Grid Asset Sales Edges Closer

UTILITIES
  • Bloomberg reports that the deal to sell Tennet’s Germany grid assets to the German government could be announced in the coming days.
  • It would appear to be in all parties’ interests to get this deal done.
  • Article mentions the previously mentioned €22bn valuation could comprise €14bn in debt and €8bn in equity. This is the first mention of debt component that we have seen.
  • Since the deal story surfaced, sub-par bonds have traded at a premium, with CoC optionality in focus. Bondholder consortiums looking for consent solicitation fees is another prospect.
  • We may see further compression towards par with the deal getting closer.

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