Flora (Upfield) - comment

Flora is tapping their 2029 notes with an additional €250m bonds, with Use of Proceeds used to redeem the 2026 $ and Euro bonds. The 2029 bonds, and this tap, are secured bonds, which trade at c.103% or 6%. The only surprise in this deal is the size of the tap, which we would fully expect the deal to be upsized. There is a call on the new deal at 2 pm today.  

We are happy to have held the 2026 Notes since August 2022 at 74% and continue to view Flora/Upfield as a stable high-yield issuer.