(SECUSS; NR/BBB)
WNG €300m 7.25Y SLB +155a vs. FV +112 (-43)
Generally seen value in triple-B consumer services - in the belly that has been on Rentokil high-cash px lines (may bring supply soon) and more recently on Elis (though heavy France exposed seems to be doing fine). They have posted a strong rally (YTD RTOLN 30s -22bps, ELIS 30s -17 vs. €IG -8, all vs. swap). Net, it may leave Securitas looking like a more reasonable alternative - the 'but' to that is the sector as a whole looks to be priced fair here. Note services co's will generally have no exposure to tariff headlines/updates.
Securitas does €14b in revenue (half/half US/Europe), 2/3 of that in traditional security (patrols etc.), 1/3 in technology and solutions. Latter is growing twice as fast (+6%) and is twice as profitable (EBIT 11%). FY24 saw +4% growth across the group on a 7% EBIT margin (targeting 8% by end of this year). Net debt levered 2.5x (target <3.0x). 1Q results generally come early May.
Find more articles and bullets on these widgets:
Via Bloomberg / market source
Type | 3-month letras | 9-month letras |
Maturity | Apr 11, 2025 | Oct 10, 2025 |
Amount | E814mln | E1.726bln |
Target | E2-3bln | Shared |
Previous | E1.041bln | E1.541bln |
Avg yield | 2.493% | 2.485% |
Previous | 2.567% | 2.366% |
Bid-to-cover | 2.23x | 2.06x |
Previous | 2.02x | 1.98x |
Previous date | Dec 10, 2024 | Dec 10, 2024 |
New 3-year:
3.375% Oct-54 Tap:
For both: