CORP SNAPSHOT: ITV and K+S emerge with stocks in the green

Stock markets are seen bouncing back at Wednesday's open and that has provided the backdrop for a couple of issuers to emerge from the pipeline with new euro offerings ahead of today's key US CPI print and FOMC verdict.

The two out on the day after roadshows that wrapped up yesterday are ITV (8yr) and K+S (5yr) which are both making rare euro market visits and offering some clarity with EUR500m no grow sizes on their transactions from the outset.

The latest offerings come after a trio of green trades on Wednesday showed that issuers can get deals away despite the volatility in adjacent markets amid ongoing political and rates uncertainty.

Leading the way Tuesday was EDF via an opportunistic EUR1bn 7yr, EUR750m 12yr & EUR1.25bn 20yr three-part green senior.

With the issuer going for size (joint sixth largest euro corp deal of 2024) and French assets being at the forefront of the risk-off tone seen at the start of the week, it was no surprise that the utility company took a pragmatic approach and started out with NICs of 40bps - then only squeezing in pricing 20bps apiece during the execution process.

That ensured huge final combined demand worth EUR12.2bn though, having peaked at EUR12.55bn.

Orders were skewed to the 20yr at EUR4.9bn (EUR5.25bn peak) with that line having received an anchor order from an institutional investor.

Emerging from the pipeline Tuesday was Stedin Holding with a EUR500m no grow 7yr green senior that landed at m/s +78 (~3bp NIC) from +110 area IPTs on a 2.7x (4x peak) covered book, whilst investors also gave the green light to Koninklijke KPN's higher-beta hybrid play despite the ongoing volatility.

The issuer was able to price its opportunistic EUR500m no grow PNC5.25 green hybrid some 61.25bps inside the mid-point of 5.5-5.625% yield IPTs and ~15bps inside one lead's fair value estimate.

That came at the expense of a few orders though with final orders dropping to EUR1.9bn from a peak of EUR3.2bn.

Away from the single currency and today we had expected to see our first sterling corporate deal of the week from Burberry which wrapped up calls Tuesday for a GBP 6yr benchmark.

An update yesterday said the deal could come as early as today's business but now one source has said it is to be Thursday at the earliest.

ITV makes rare appearance

** UK-based public broadcaster ITV plc (Baa3/BBB-/BBB-) mandated Barclays, BNP Paribas, Mizuho and NatWest Markets as Active Bookrunners to arrange a series of fixed income investor calls 10-11 Jun. A EUR500m no grow 8yr (Jun 2032) offering is now live. Passive bookrunners are Lloyds Bank Corporate Markets plc and Wells Fargo Securities International Limited.

IPTs: Books are open at m/s +175-180

- Over 70 investors engaged via two days of calls

- Deal includes a 125bp sub-IG coupon step

- Expected issue ratings are Baa3 (Moody's) and BBB- (S&P)

- ITV is a rare issuer of bonds and has just one euro line outstanding in the form of EUR600m 1.375% Sep 2026s launched in Sep 2019 at m/s +170 on a 2.66x book. That line was bid at +81 on the official comps list sent Tuesday (below)

- The company has concurrently announced a capped cash tender offer on the aforementioned EUR600m 1.375% Sep 2026 notes (ISIN: XS2050543839)

** COMPS **

Pre-announcement indicative secondaries vs I-spread (bid)

* Media & Advertising Secondaries *

Rating Coupon Maturity Tenor Size I-sprd Steps

ITVLN Baa3/BBB-/- 1.375 Sep-26 2.3y 600m +81 Y

BERTEL Baa2/BBB/- 1.500 May-30 5.9y 750m +77

NFLX Baa2/BBB+/- 3.625 Jun-30 6.0y 1100m +92

OMC Baa1/BBB+/- 3.700 Mar-32 7.7Y 600m +107

WPPLN Baa2/BBB/WD 1.625 Mar-30 5.8y 600m +107

WPPLN Baa2/BBB/WD 4.000 Sep-33 9.3Y 650m +136

DECFP Baa3/BBB-/- 1.625 Feb-30 5.7y 500m +116

* BBB UK Secondaries *

TSCOLN Baa3/BBB-/BBB- 4.250 Feb-31 6.7y 500m +111

SMDSLN -/BBB- *+/- 4.500 Jul-30 6.1y 650m +116 Y

EZJLN Baa2/BBB/- 3.750 Mar-31 6.8y 850m +124

* Recent Supply *

ISSDC Baa3/BBB/- 3.875 Jun-29 5.0y 500m +100

ELISGP NR/BBB-/- 3.750 Mar-30 5.8y 400m +111

ACFP -/BBB-/BBB- 3.875 Mar-31 6.8y 600m +111

SECUSS -/BBB/- 3.875 Feb-30 5.7y 500m +113

AMCR Baa2/BBB/- 3.950 May-32 8.0y 500m +121

LKQ Baa3/BBB-/BBB- 4.125 Mar-31 6.8y 750m +127

HOTGR -/BBB-/- 4.250 May-30 6.0y 650m +136

WBD Baa3/BBB-/BBB- 4.302 Jan-30 5.6y 650m +138

K+S returns after six-year EUR hiatus

** German chemical company K+S AG (BBB-) hired BNP Paribas, Commerzbank, Helaba and UniCredit as Joint Bookrunners to arrange a series of fixed income investor calls 10-11 Jun. A EUR500m no grow 5yr (Jun 2029) bond offering is now live.

IPTs: Marketing has started at m/s +190-200

- Investor calls concluded Tuesday with over 50 investors engaged

- Use of proceeds will be general financing purposes, including the refinancing of existing debt. That is likely to include the payback of the borrower's only outstanding euro line, a EUR600m 3.25% ex-6yr that launched in 2018 and matures next month

K+S AG - Pre-Announce Comparables

Indicative bid side vs i-spd

Issuer All Ratings ESG Issue Date Coupon (%) Maturity Years to Maturity Amount ( mn) I-Spread

Broader Agri & Chemicals

SUDZUCKER INT Baa2 / BBB / NR SLB Oct-22 5.125 Oct-27 3.4 400 +89

VITERRA FINANCE NR / BBB- *+ / BBB *+ - Sep-21 1.000 Sep-28 4.3 700 +97

SOLVAY SA NR / BBB- / NR - Mar-24 3.875 Apr-28 3.8 750 +96

SOLVAY SA NR / BBB- / NR - Mar-24 4.250 Oct-31 7.3 750 +144

IMCD NV Baa3 / NR / BBB- - Sep-23 4.875 Sep-28 4.3 500 +127

Chemicals & Materials

CELANESE US HLDS Baa3 / BBB- / BBB- - Aug-21 0.625 Sep-28 4.3 500 +117

CELANESE US HLDS Baa3 / BBB- / BBB- - Jul-22 5.337 Jan-29 4.6 500 +113

Resources

ANGLO AMERICAN Baa2 / BBB *- / BBB+ - Mar-24 3.750 Jun-29 5.0 500 +107

ANGLO AMERICAN Baa2 / BBB *- / BBB+ - Mar-24 4.125 Mar-32 7.8 750 +142

CEPSA FINANCE SA Baa3 / BBB- / BBB- - Apr-24 4.125 Apr-31 6.8 750 +165

GLENCORE FIN DAC Baa1 / BBB+ / NR - Feb-21 0.750 Mar-29 4.7 600 +107

GLENCORE FIN DAC Baa1 / BBB+ / NR - Apr-24 4.154 Apr-31 6.9 600 +141

IMERYS SA Baa3 / BBB- / NR SLB Nov-23 4.750 Nov-29 5.5 500 +137

Recent BBB- Supply

HOCHTIEF AKTIENG NR / BBB- / NR - May-24 4.250 May-30 6.0 650 +144

ELIS SA NR / BBB- / NR - Mar-24 3.750 Mar-30 5.8 400 +108

VALEO SE Baa3 / BB+ / NR Green Apr-24 4.500 Apr-30 5.8 850 +199

METRO NR / BBB- / NR - Feb-24 4.625 Mar-29 4.7 500 +129

ORANO SA NR / BBB- / NR - Mar-24 4.000 Mar-31 6.8 500 +126

SCHAEFFLER Baa3 / BB+ / BB+ - Jan-24 4.750 Aug-29 5.2 600 +163

SCHAEFFLER Baa3 / BB+ / BB+ - Mar-24 4.500 Mar-30 5.8 850 +185

In the pipeline

** Burberry Group Plc (Baa2) which has hired HSBC, J.P. Morgan, Lloyds and NatWest Markets as Joint Active Bookrunners to arrange a series of fixed income investor calls commencing 10-Jun. A GBP 6yr senior unsecured benchmark transaction will follow

Performance tracker of recent EUR IG/split-rated benchmark deals

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