Fnac Darty : Initiating coverage of the new bonds with a Neutral recommendation and reiterating our Buy recommendation on the 2029 notes
Fnac Darty has successfully priced a € 300m senior unsecured bond offering due 2032 (NC3). Issued at par, the notes carry a coupon of 4.75% vs. an IPT of 5-5.25% and a price talk of 4.875% a (+/-12.5). In our report published yesterday morning, we had estimated that the fair value could theoretically be 4.75% relative to its 'BB+' rating and peers on the market. However, if we were to take into account the discounted pricing of the existing 2029 notes, it should rather be in the low 5%s.The issuance was carried out at 4.75%. It could therefore support a favourable repricing of the 2029 notes (currently offering a 4% yield to the 04/27 call). We initiate coverage of the newly issued 2032 notes with a Neutral (Hold) recommendation and reiterate our Buy recommendation on the 2029 notes and on the 2027 convertibles bonds which will be the subject of a buyback offer with proceeds from the issuance (pending the terms).
Fnac Darty is engaged in the leisure and entertainment, technology, and household appliances retail market in France and a player on markets in other countries where it operates such as Spain, Portugal, Belgium, the Netherlands and Switzerland. Fnac Darty also has franchise operations in Morocco, Qatar and Ivory Coast.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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