Plastic Omnium : Focus Emission
Plastic Omnium is preparing to issue a new € 500m bond with a seven-year maturity (2024). We estimate the group’s rating at BBB with a positive outlook. On the secondary market, the 2020 Plastic Omnium paper trades at ASW+52bp. Comparable unrated bonds are: 1/ the 2024 Lagardère bond issued at ASW+135bp two days ago (and trading at ASW+129bp today). However, given the spread on the 2019 Lagardère note (ASW+75bp, i.e. 23bp more than the 2020 Plastic Omnium bond), we believe that the new Plastic Omnium bond is likely to be issued at a tighter spread than the 2024 Lagardère bond.2/the 2024 Groupe Seb (ASW+95bp) and the 2023 Bureau Veritas papers (ASW+89bp) which both have a BBB shadow rating. Given the group’s market popularity and management’s track record, it seems likely that the new bond would easily trade at spreads comparable to those of Seb and Bureau Veritas, i.e. at around ASW+90/95bp. As such, any pricing above that level will, in our view, offer a potential for spread tightening. Note that such levels would also carry an attractive premium compared with the spread of a comparable rated issue such as the 2024 Valeo bond (ASW+40bp).>Compagnie Plastic Omnium is a manufacturing and services company which partners with car manufacturers and local communities, through its two core businesses which are Automotive Equipment and Environment. Co.'s activities can be divided into two divisions: the Automotive division and the Environment division. The Automotive division designs, manufactures and sells vehicle body parts (exterior parts and modules) and plastic fuel systems. The Environment division provides products and services for local authorities, including waste pre-collection and management equipment and services, and road and highway signage.
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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