Spie : Focus Emission
Spie, which fully redeemed its bonds in January 2015 ahead of its IPO, returns to the bond market with a EUR 600m issue to fund the acquisition of SAG, transaction costs and for general corporate purposes. The new notes will rank pari passu with the senior credit facilities and have the same guarantors (main material subsidiaries, Financière Spie and Spie Operations), which must represent at least 65% of group’s EBITDA under the facility agreement.We anticipate a slight de-leveraging in coming quarters as we expect Spie to be focused on the integration of SAG (its largest acquisition to date). We recommend to subscribe to the new issue at a yield of 3.125% or more, slightly above the average yield of a sample of HY bonds with comparable ratings and maturities (3.0%). This level would provide a 20 bp premium on average over the 2024 notes of Ardagh (Ba3/BB-, z+245 bp, ytm of 3.0%) and Rexel (Ba3/BB-, z+231 bp, ytm of 2.8%). >Spie is a provider of electrical engineering and IT services and an infrastructure and building contractor. Co. helps to design, finance, manage and implement an array of projects ranging from high-speed TGV and conventional rail lines to metros and light rail systems. In addition, Co. offers telecom and information network services. Through the Commercial Segment, Co. is engaged in construction and renovation projects. Co. also offers wired building services as well as multi-disciplinary industrial maintenance and facilities management solutions.
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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