Rekeep - comment

Rekeep’s investor call for the launch of a new €350m 4.5yr, 9.5% at 97.5% (c.10.3% yield) has only just ended. Proceeds plus cash on the balance sheet shall be used to redeem the existing €370m SSNs. The Company have not given much guidance on numbers for FY24 with Q4 not due to be released until April. The only adj EBITDA guidance given is that growth seen for the first 9 months over the prior year continues into year-end. The new bonds will be rated B3/B

Separately, the Company has agreed and received a €30m settlement for the terminated Riyadh railway contract. This amount is Gross of VAT but excludes other taxes and costs and will boost the Company’s liquidity. The possibility of Rekeep selling its  Energy Business appears to have dwindled with this refinancing, the Company has outlined some reorganisational efforts surrounding this segment.  We will await the Company call to see if this will change the composition of its reporting.