Report
Saur : New bond issue
Yesterday, Saur issued €500m in bonds maturing in January 2031, which will be used to repay the 4.5% April 2027 notes (€300m, a tender offer at 103.1% is currently underway), as well as part of its confirmed RCF (€246m currently drawn).Like the last offering in October 2024, the new bonds are structured as green bonds dedicated to investments in the water cycle ("blue bonds").
The IPT started at “4.5% area,” then the guidance was tightened to “4.125% +/-12.5,” which was still attractive compared to the SAUR 2029 (YTW 3.6%) or compared to the average yields observed on the market for a BB+ bond with a 5/6-year maturity (3.4/3.6%) or even BB (3.7/3.8%). In the end, the book closed with more than €1.75 bn in orders and the securities were placed at 4.0% (coupon 3.875%, reoffer 99.427%).
We are taking advantage of this new bond issue to review the case and adjust our recommendations on SAUR bonds.
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Oddo BHF
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.
Delphine Chauvin
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