ODDO BHF Small & MIDCAP MORNING NEWS – 02/06/2025

ODDO BHF Small & MIDCAP MORNING NEWS – 06/02/2025

Ayvens : Q4 2024, a mixed year-end, below expectations, and impacted by legal issues in UK, despite good execution

Loxam : De retour sur le marché obligataire

Loxam vient de boucler le placement d’une nouvelle obligation de 500 m EUR à échéance en février 2030 (5NC2). Le produit de cette émission et l’utilisation de la trésorerie disponible (188 m EUR dont ~7 m EUR pour les fees) serviront à rembourser par anticipation les obligations sécurisées 3.75% 15/07/26 (450 m EUR, callable au pair) et les subordonnées 5.75% 15/07/27 (231 m EUR encore en circulation, callable au pair). Nous profitons de cette opération, qui était attendue, pour refaire un point sur la signature et ajuster nos recommandations sur les obligations LOXAM.

Loxam : Return to the bond market

Loxam has just completed a new offering of € 500m notes due February 2030 (5NC2). Proceeds from the issue and the use of available cash (€ 188m, including around € 7m in commissions) will be used to prepay the 3.75% 15/07/26 covered bonds (€ 450m, callable at par) and the 5.75% 15/07/27 subordinated bonds (€ 231m still outstanding, callable at par). We are taking advantage of this issuance, which was expected, to review the issuer and fine-tune our recommendations on LOXAM bonds.

Yay, France has a budget....a socialist one

The Barnier budget (RIP) planned to shrink the public deficit by one point of GDP, mainly counting on tax increases. The Bayrou budget halves this adjustment, keeps all the tax increases already envisaged and adds others. This was needed to secure the neutrality of the Socialist Party in the National Assembly, a party responsible for all the major economic policy mistakes of the past four decades (retirement at 60 under Mitterrand, the 35-hour week under Jospin, the fiscal bludgeoning under Hollande). We may have doubts about whether the budget deficit goal (5.4% of GDP) will be achieved but w...