Elior : New bond issue to repay 2026 notes

Elior plans to issue a new € 500m notes due January 2030, which will be used to prepay the 2026 notes (€550m, 3.75%). An early redemption offer at par has been made (vs. 100.938% in the event of a call currently, which will fall to 100% on 15 July 2025). The offer runs until 27 January 2025, with repayment envisaged on 5 February (subject to completion of the issuance of the new bond).
At the same time, Elior announced that it had negotiated with its banks to obtain a new syndicated RCF of € 430m, which will be available until the summer 2029 (i.e. six months before the maturity of the new bond). It will replace the existing € 350m RCF, which was unvalaible until 2026.
Elior is expected to post further earnings growth this year, albeit at a slightly steadier rate, and it should also continue to reduce its debt. According to our estimates, its net debt-to-EBITDA ratio should fall below 3x at end-2026, which would correspond to a leverage ratio of below 4x including non-recourse debt of the securitisation programme.
The price-talk for the new ELIOR 29 bonds was announced at 6.0%-6.25%, slightly below the IPT given yesterday (6.25%/6.5%).