Iceland - comment

Iceland are tendering for their outstanding 2025 notes at par plus accrued funded by the proceeds of New Notes, and £25m on cash from balance sheet.  Our initial view while attending the presentation of FY23 numbers earlier in the month was the presentation was effectively a “roadshow” and tat the Company would seek to refinance.  Nevertheless, we had concluded the Company would not refinance in the current market and would seek to refinance early 2024 on the back of strong momentum from upcoming quarters.  As it is, the Company are moving now, with a maturity shorter than the 2028 bonds wit Initial price talk (mid to high 11%) wider than the current trading levels of the 2028 bonds.  That’s going to cost us a few points - at least in the short term.

Roadshow is today and tomorrow with call at 12:30 today.  https://www.netroadshow.com/events/login?show=0a4736f7&confId=53569