EUR 407.14 For Business Accounts Only

Verisure - Our comment on the new €1,145m issue

Verisure, the No.1 alarm provider in Europe, is marketing €1,145m of Equivalent 6NC2 EUR, SEK senior unsecured bonds. The net proceeds, alongside €690m of incremental debt under the company’s existing €1,690m term loan due 2022, is to repay the €720m private junior notes due 2023 and €19m drawn under the €300m RCF due 2021, plus to pay €1,050m of dividends.
The offering follows a consent solicitation, started November 3, sought from noteholders of the existing secured 2022 tranche to waive restricted payments covenants in order to permit the distribution of dividends. On November 9, the group announced that it had received the required consents from at least 50% of noteholders by principal amount, paving the way for the proposed deal. A cash payment of €9.5m (1.5% of the notes’ amount) will be paya-ble on November 24 to bondholders who have given their consent.
Simultaneously, Moody’s and S&P have downgraded Verisure’s corporate rating, to B2 (from B1) and B (from B+) respectively, with a stable outlook, thus returning them to the same level as in October 2015 when the firm issued the €630m 6% Secured notes due 2022.
For our part, we find the proposed deal...