Loxam : Last call on the bond market before the summer break

Loxam has just tapped the market again, this time with another offering of € 540m notes due in February 2031 (5.5 yrs). Proceeds from the offering will be used to repay its notes due in April 2026 (senior secured, € 300m, 2.875% coupon) and due April 2027 (subordinated, € 167m still outstanding, 4.5% coupon), as well as a small portion of the outstanding 6.375% May 2029 bonds (use of the “special redemption” clause of up to 10% at 103%). While the group had already refinanced part of its 2026 and 2027 maturities in February, it was expected to revisit the market by the end of the year, but we thought it was more likely to do so after September. Currently favourable issuing conditions must have precipitated the group's decision.
We are taking advantage of this issuance to review the last news and fine-tune our recommendations on LOXAM bonds.