Casino - Sarria Daily Comments 16/11/2021

CASINO — (Tomás) Casino announced this morning their intention to tap the Term Loan B that matures in August 2025 for €400m in order to tender for Jan 23 and March 24 bonds. Frankly this is tinkering at the edges and reiterates our view that with the change in RCF covenants this year and the extension of maturities at Rallye (Senior Secured), Casino/Rallye have no time pressure to realise some of their non-core assets. We are a little surprised that they are using the secured market to refinance, as we were coming to the view that they would raise secured debt at Cnova instead of the previously planned primary IPO. Note there will still be capacity for more Senior Secured Debt under the 3.5x covenant level - originally €750m less the planned €400m = €350m.