Commentary & Deal Flow

PEU (FIN) Plc (Pepco Group) (PEPGRP) EUR375m (up from EUR300m) 144A/Reg S sr sec notes due 07/01/28 (5y). NC2 (MWC B+50bp), then at 103.625, 101.813, 100. Equity claw: 2y 40% at 107.25. Ba3/BB-/BB+ (stable/stable/stable). Via Citi/GS/ING/JPM (B&D) jt glocos and books, Santander/Lloyds/Bank Pekao/RBI/Barc passive books. No reg rights. List ISE. NY law. Settles 06/28 (T+5). Reg S ISIN: XS2643284388. IPT: high 7s. EUR75m upsize to pay down revolver. Px talk: 7.50% area. Final terms: EUR375m at 7.25%.

Priced: 7.25% at 100. +470bp vs OBL 2.40% 10/19/28.

Did investor call at 10am UKT Mon (small group meetings Mon-Tues). Books were closing at 4pm UKT today. Reconfirms were due by 4:30pm UKT today. UOP: along with EUR12m cash on hand to repay its EUR300m term loan facility (EUR75m upsize to pay down revolver). Biz: owner-operator of a multi-format pan-European discount variety retail business with over 4,000 stores. It is a sub of Steinhoff Intl. HQ: London, UK.