Basic-Fit New €307.6m convertible 2031 bond

BasicFit announced the successful pricing of a EUR 307.6m senior unsecured convertible bond due April 2031. The 5year bonds were issued at par with a 2.50% semiannual coupon and an initial conversion price of EUR 46.62, implying a 45% premium. Proceeds will be used for general corporate purposes, refinancing and to support accelerated organic and/or inorganic growth. Basic-Fit announces it has obtained a waiver for approx. €159.0m on its 2028 outstanding €303.7m convertible with a put option in June 2026. This bond was fully backed by new  syndicated credit facilities received in FY25. Additional, the FCF generation in FY26 allows for significant deleveraging. Hence, the new convertible seems somewhat surprising but we understand the rational behind the low coupon of 2.5% and the enhanced credit mix. Our current valuation is based on fully diluted shares (approx. 6m) to be conservative, despite the assumption that part of the convertible would be put in June 2026.  Hence, the potential creation of 6.6m new shares in 2031 will slightly dilute our valuation but not substantially.