Ingenico : Issuance focus
Ingenico is preparing the launch of a non-rated 7-year (2024) senior unsecured bond issue of € 500m. The issuance proceeds will be used to finance the Bambora deal and for general corporate purposes.The terms of the issue are fairly standard with an investment-grade style prospectus. As with the existing Ingenico 2021 bond, the preliminary prospectus for the new bond includes a portability clause in the context of the poison put (change of control). The put cannot be exercised if the predator is rated "at least BBB-“ and maintains this rating following the integration of Ingenico. Ingenico is not rated by the agencies, but this portability clause substantiates our 'BBB-' shadow rating (which, to recap, structurally reflects the acquisitive risk conservatively).The average asset-swap spread for 'BBB-' rated seven-year bonds is about 80bp. The Bolloré 2% 01/2022 (ASW+133bp) and Eurofins 2.125% 07/2024 notes (ASW+152bp) are among the non-rated bonds followed by our credit research team and on which we have a 'BBB-' shadow rating.On average, non-rated bonds offer a pick-up of around 50bp compared with rated bonds (although the standard deviation may be fairly large). On this basis, by adding 50bp to the average yield of our sample of 7-year 'BBB-' rated bonds (80bp), we calculate a fair spread of 130bp. The price talk (MS+130-135bp) seems fair to us. Still, we recommend subscribing to the issue to benefit from the pick-up of around 50bp vs. 'BBB-' rated notes.Note that we published a detailed Credit Focus on Ingenico on 6 March 2017.>Ingenico Group is a business technology company, operating in 125 countries. Co. designs, develops and supplies payment terminals, offering mercantile payment solutions, cross-border and global payment services and certified global service platform. Co.'s services are done around Payment terminals and software; Terminal estate management, security application updates; Connectivity ensuring the terminal-to-bank host connection; Full after-sales service taking charge of every phase in the lifecycle of terminals and software; 24/7, from installation, maintenance & repair to upgrades; Centralization of transactions; End-to-end security - from terminal to bank or processor..
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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