TRANSPORTATION: Evri (Secured; B2/B+) DEAL INCREASED; price talk
(NOT Everi/EVRI - who is a $ issuer gaming co.)
(Apollo deal)
Still at price talk, but deal size increased from £500m to £725m. All else unch below.
We assume it will pull back the euro term loan (expected £900m) on the upsizing.
Credit negative if not (co reported forward-looking net 4.9x will move to 5.5x).
£500m 7NC3 Snr Sec 8.25%a (+/-12.5) eqv. to OAS+415/UKT+440
- 25 in from IPT
Worth looking at this deal on 1) firm operating performance 2) has long contractual relationships with large clients and 3) taking Royal Mail/IDS's market share (can diversify out that risk with spread pick-up). That needs to be balanced with 1) higher leverage at gross 6x (co reported forward net 4.9x) 2) limiting rating upside on owner and 3) competition from Amazon who holds the monopoly on its platform orders and now provides delivery as a external service.
Notes on the co; https://marketnews.com/transportation-evri-secured-b2-b-notes-on-co