EU CONSUMER STAPLES: Carrefour x Ahold Delhaize had talks (x3)
(CAFP; NR/BBB)(ADNA; Baa1/BBB+)
CAFP equity value is only ~€10b, on a combined co that's <1x leverage even on full debt funded acquisition. So leans net positive for CAFP while marginal negative for ADNA in short-term.
On how prone it is to takeover, trailing P/E multiples:
• Carrefour: 13x
• Stoxx 600: 15x
• Tesco: 16x
• Couche-Tard: 18x
• Ahold Delhaize: 19x
• Kesko: 23x
• Woolworths: 24x
• S&P 500: 24x
• Walmart: 38x
Worth checking your covenant package on any CAFP bonds.
New bonds did NOT come with CoC last month but they do carry EoD protection for asset sales (at early redemption amount = normally par) if a principal subsidiary (>15% of consolidated sales or assets) is ceased. This protection is waived if IG ratings are maintained by S&P on a pro forma basis.
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EGB SYNDICATION: Austria Triple Tranche Tap: Priced
2.50% Oct-29 RAGB (ISIN: AT0000A3EPP2)
- Reoffer: 100.86 to yield 2.293%
- Spread set earlier at MS + 19bp (guidance was MS+20 Area)
- Benchmark: HR 99% vs 2.50% Oct-29 Bobl +32.5bp. Spot ref 102.24.
- Size: E3bln (inc E500mln retention)
- Books closed in excess of E16.7bln (inc E1.525bln JLM interest)
- TOE: 13:46BST / 14:46 CET. FTT immediately.
3.20% Jul-39 RAGB (ISIN: AT0000A3D3Q8)
- Reoffer: 99.562 to yield 3.238%
- Spread set earlier at MS + 66bp (guidance was MS+67 Area)
- Benchmark: HR 87% vs 4.25% Jul-39 Bund +52.7bp. Spot ref 117.92
- Size: E2.25bln (inc E250mln retention)
- Books closed in excess of E22.9bln (inc E1.25bln JLM interest)
- TOE: 13:43BST / 14:43 CET. FTT immediately.
3.15% Oct-53 RAGB (ISIN: AT0000A33SK7)
- Reoffer: 95.00 to yield 3.427%
- Spread set earlier at MS + 97bp (guidance was MS+98 Area)
- Benchmark: HR 104% vs 1.80% Aug-53 Bund +56.1bp. Spot ref 79.51
- Size: E1.75bln (inc E250mln retention)
- Books in excess of E23.2bln (inc E1.65bln JLM interest)
- TOE: 13:40BST / 14:40 CET. FTT immediately.
For all:
- Settlement: April 30, 2025 (T+5)
- Bookrunners: Barclays (B&D), Citi, DB, GS, JPM, Raiffeisen Bank
From market source
STIR: Effective Fed Funds Rate
- FRBNY EFFR for prior session:
- Daily Effective Fed Funds Rate: 4.33% (+0.00), volume: $99B
- Daily Overnight Bank Funding Rate: 4.33% (+0.00), volume: $287B
- Repo Reference Rates - from earlier
- Secured Overnight Financing Rate (SOFR): 4.30% (-0.02), volume: $2.527T
- Broad General Collateral Rate (BGCR): 4.29% (-0.03), volume: $1.034T
- Tri-Party General Collateral Rate (TCR): 4.29% (-0.03), volume: $993B
- (rate, volume levels reflect prior session)
EQUITIES: Estoxx outright Call buyer
SX5E (16th May) 5200c, bought for 31.50 in 7k vs 1.61k at 5020.
