Eutelsat - Better Lucky than good - Positioning

All,

Please find our updated (prices) analysis here.

So we got lucky. We were mentioning the defence contract in our deliberations, but it certainly wasn’t the driver for our decision to take the short off and go full long instead - a move we don’t usually like in the first place. Now that the world order is changing fast, so may be the prices for Eutelsat bonds and with that it is already time to say good bye to this trade.

Investment Rationale:
We are already selling our 6% of NAV position in the 2029 SUNs after only three days in which the bonds rocketed from 86c/€ offer to 98c/€ bid. We do not consider the OneWeb defence contract an absolute certainty and if the world order normalises again, OneWeb might fall back to its place just last week. We will be happy to revisit Eutelsat in the future if an opportunity arises.

We look forward to discussing the name this afternoon as it offers a lot of angles to consider across its capital structure.

We look forward to seeing you on the call.

Wolfgang

E: wfelix@sarria.co.uk
T: +44 203 744 7003
www.sarria.co.uk