Deutsche PBB Returns to Subordinated Bonds to Replace Old Debt
German commercial property lender Deutsche Pfandbriefbank AG is selling its first subordinated bond in seven years to fund the buyback of some of its old junior debt.
The bank is offering €300 million ($349 million) of Tier 2 bonds on Wednesday at initial price thoughts of around 7.75%. The debt will be callable in 2030 and mature in 2035, according to a person familiar with the matter who asked not to be identified. The issue will finance a partial buyback of two Tier 2 bonds that mature in 2027.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Premier League clubs believe Real Madrid superstar can be signed for €85m
Real Madrid may look to make a big sale after spending big on Dean Huijsen, Alvaro Carreras and a new midfielder, and should this be the case, Rodrygo Goes would be a leading candidate to be moved on. Rodrygo has been unhappy at Real Madrid for a while, although it is still believed that he is not yet seeking a move away. But if things do not improve for him, his stance could change. Advertisement But it could be Real Madrid that look to sell him first, rather than wait for the situation to escalate. And if so, Rodrygo would not be short of suitors, with Arsenal leading Chelsea and Manchester United in the race to secure his signature. Real Madrid prepared to lower Rodrygo Goes asking price CaughtOffside have now released further details on the situation, revealing that Real Madrid are currently asking for €110m to do business. But there is a belief at Arsenal that a deal could be done for €80-85m. Image via JESUS ALVAREZ ORIHUELA/Diario AS Arsenal are desperate to sign Rodrygo this summer, with their interest being led by head coach Mikel Arteta. The Gunners had previously been after Nico Williams, but with the Athletic Club winger expected to join Barcelona, they have moved on to the Real Madrid man as his alternative. Advertisement Real Madrid's current asking price of €110m would be too much for Arsenal, who have already agreed a deal to sign Martin Zubimendi from Real Sociedad. But were the price to come down during negotiations, they would be prepared to strike. Rodrygo is facing an uncertain future at Real Madrid. The arrival of Franco Mastantuono means that he has even more competition for his place in the line-up, where he was already fighting with Arda Guler and Brahim Diaz. As such, there could be chances for him to move on.
Yahoo
26 minutes ago
- Yahoo
Stabilization Notice - PRE STAB - DOLCETTO HOLDCO S.P.A.
25/06/2025 Not for distribution, directly or indirectly, in or into the United States or any jurisdiction in which such distribution would be unlawful. DOLCETTO HOLDCO S.P.A. Pre-stabilisation Period Announcement BNP Paribas (contact: Stanford Hartman telephone: 0207 595 8222 hereby gives notice, as Stabilisation Coordinator, that the Stabilisation Manager(s) named below may stabilise the offer of the following securities in accordance with Commission Delegated Regulation EU/2016/1052 under the Market Abuse Regulation (EU/596/2014). The securities:1 Issuer: DOLCETTO HOLDCO S.P.A. Guarantor (if any): N/A Aggregate nominal amount: TBCTBC Description: EUR 7yr FixedEUR 7yr FRN Offer price: TBCTBC Other offer terms: Stabilisation: Stabilisation Manager(s) BNP Paribas, Barclays, Deutsche Bank, Intesa, Mizuho, CACIB, KKR Stabilisation period expected to start on: 25/6/25 Stabilisation period expected to end no later than: 13/08/25 Existence, maximum size and conditions of use of over‑allotment facility: The Stabilisation Manager(s) may over‑allot the securities to the extent permitted in accordance with applicable law. Stabilisation trading venue: OTC In connection with the offer of the above securities, the Stabilisation Manager(s) may over‑allot the securities or effect transactions with a view to supporting the market price of the securities during the stabilisation period at a level higher than that which might otherwise prevail. However, stabilisation may not necessarily occur and any stabilisation action, if begun, may cease at any time. Any stabilisation action or over‑allotment shall be conducted in accordance with all applicable laws and rules. This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of the Issuer in any jurisdiction. This announcement and the offer of the securities to which it relates are only addressed to and directed at persons outside the United Kingdom and persons in the United Kingdom who have professional experience in matters related to investments or who are high net worth persons within Article 12(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and must not be acted on or relied on by other persons in the United Kingdom. In addition, if and to the extent that this announcement is communicated in, or the offer of the securities to which it relates is made in, the UK or any EEA Member State before the publication of a prospectus in relation to the securities which has been approved by the competent authority in the UK or that Member State in accordance with Regulation (EU) 2017/1129 (the 'Prospectus Regulation') (or which has been approved by a competent authority in another Member State and notified to the competent authority in the UK or that Member State in accordance with the Prospectus Regulation), this announcement and the offer are only addressed to and directed at persons in the UK or that Member State who are qualified investors within the meaning of the Prospectus Regulation (or who are other persons to whom the offer may lawfully be addressed) and must not be acted on or relied on by other persons in the UK or that Member State. This announcement is not an offer of securities for sale into the United States. The securities have not been, and will not be, registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public offer of securities in the United in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26 minutes ago
- Yahoo
Estimating The Intrinsic Value Of Grafton Group plc (LON:GFTU)
Using the 2 Stage Free Cash Flow to Equity, Grafton Group fair value estimate is UK£11.45 Current share price of UK£9.95 suggests Grafton Group is potentially trading close to its fair value Analyst price target for GFTU is UK£11.89, which is 3.9% above our fair value estimate In this article we are going to estimate the intrinsic value of Grafton Group plc (LON:GFTU) by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£122.0m UK£147.4m UK£167.8m UK£164.9m UK£164.2m UK£164.9m UK£166.7m UK£169.3m UK£172.4m UK£175.9m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x4 Est @ -1.70% Est @ -0.43% Est @ 0.46% Est @ 1.08% Est @ 1.52% Est @ 1.83% Est @ 2.04% Present Value (£, Millions) Discounted @ 8.9% UK£112 UK£124 UK£130 UK£117 UK£107 UK£98.8 UK£91.7 UK£85.5 UK£79.9 UK£74.9 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = UK£1.0b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.5%. We discount the terminal cash flows to today's value at a cost of equity of 8.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£176m× (1 + 2.5%) ÷ (8.9%– 2.5%) = UK£2.8b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£2.8b÷ ( 1 + 8.9%)10= UK£1.2b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is UK£2.2b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of UK£9.9, the company appears about fair value at a 13% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Grafton Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.9%, which is based on a levered beta of 1.242. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Grafton Group Strength Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Trade Distributors market. Opportunity Annual revenue is forecast to grow faster than the British market. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the British market. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Grafton Group, there are three important elements you should consider: Financial Health: Does GFTU have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for GFTU's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every British stock every day, so if you want to find the intrinsic value of any other stock just search here. — Investing narratives with Fair Values A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. By Agricola – Community Contributor Fair Value Estimated: CA$12.29 · 0.9% Overvalued DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts By WynnLevi – Community Contributor Fair Value Estimated: $195.39 · 0.9% Overvalued Historically Cheap, but the Margin of Safety Is Still Thin By Mandelman – Community Contributor Fair Value Estimated: SEK232.58 · 0.2% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
