Steinhoff - comment

Pepco are launching a €300m bond to repay their term A facility of equal size. It is interesting to see the bond market out in front of the private lenders on such a name and across Eastern Europe - for the most part. The company has certainly been doing very well - even if recent results were a little bit behind the company’s own ambitious guidance. Not undeserved, but still astonishing yours truly: At 7% IPT the premium is less than 2.5% behind UK guilts! We are updating/renewing our analysis of Steinhoff in the wake of the current restructuring.