Techem : We recommend subscription to the € 600m 2025 SSN at a yield of 2.25% or more; we affirm our Neutral recommendation on the Second-lien Notes

Techem is marketing € 600m of Senior Secured Notes, which will be used to refinance part of the € 2.3bn TLB. In parallel, Techem is repricing its TLB and is reportedly seeking a 50bp reduction. Both will result in a lower annual cash interest burden, which will give more flexibility, i.e. c. € 10m p.a. - The company released an interim report, which disclosed that the company achieved revenue growth of 1.5% in the first eight months of FY 20, but Adjusted EBITDA grew by 4.8%. The ...