Teleperformance : TP addresses 2025 bond maturity and other debt; subscribe to the new 2030 senior unsecured notes at a yield of 4.25% or more
Teleperformance SE (TP) is in the market with a new EUR Reg S Bearer senior unsecured, 5-year bond, expected to be rated BBB by S&P. The bond will be issued under TP’s EMTN Programme. The net proceeds will be used to address the July 2025 bond maturity (EUR 616m outstanding) and potentially used credit lines in connection with the recent acquisition of ZP Better Together.Credit Opinion:
We affirm our Stable credit opinion. The credit profile has not really changed since we initiated the name back in July 2024.
Recommendations: We update our recommendations on existing bonds and the new bond.
2025: Neutral (vs. Buy).
2027: Neutral (vs. Buy).
2028: Buy (affirmed).
2029: Neutral (affirmed).
2031: Neutral (vs. Reduce).
New 2030 bond: Taking the 2029 and 2031 bonds, the new instrument would require a yield of c. 4%, which equates to a 60bp spread over the group of peer bonds. We need a bit more upside to become a buyer and therefore recommend subscription at a yield of 4.25% or more.
Teleperformance is engaged in outsourced customer experience management. Co. delivers integrated solutions to corporations and administrative bodies worldwide to manage all aspects of the customer-relations cycle on their behalf. Co.'s activities include four core business areas: customer care (these are services provided as part of customer service management); technical support; debt collection; and business information and marketing actions. As of Dec. 31, 2013, Co. had approximately 110,000 computerized workstations across 46 countries. Co.'s client includes industries like Telecoms, Internet, Financial services, Technology/media, Insurance, Government sector and Utilities.
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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