Modulaire Group - comment

Modulaire's new €1bn TLB pushes bank maturities out to June 2031 from June 2028. The cost of the new TLB is similar at 7% (margin is 25bp higher at 4.50%. An additional €900m in capital will be needed to fully refinance the TLB (€1.8bn + €0.1bn in RCF drawings). Modulaire has committed to raising €500m in SSNs, but we expect the company will want to issue the €900m required. The Nov 2029 SUNs are likely to be refinanced alongside the 2028 SSNs, but there is no hurry here for Modulaire.