Transcom - comment

With less than two years to maturity, Transcom bonds still languish in the mid-70s. Today's Q1 results will do nothing to change that. The path to refinancing isn’t clear. There are modest improvements to leverage expected over 2025, but leverage will remain c.4.0x. ICR is broadly 1.0x, but equity injection may be required to facilitate a new bond financing, with refinancing rates likely to increase. 

Q1 revenue was broadly flat, coupled with stable EBITDA margins, resulting in positive cashflow after interest for the quarter. IFRS 16 Leverage ticked up to 4.2x due to higher lease liabilities from new lease arrangements in Egypt and India and extensions of existing leases.