Primary Analysis: Ontex 2030 SNs Fair Value at Low 5% Area Backed by Defensive Products, Low Leverage, Market Position; Raw Material Exposure Remains Though Has Shown Ability to Weather Storm

Credit Research: Nikhil Varsani Jennifer Chan Legal Research: Aditya Khanna Reporting: Jihye Hwang Relevant Items: Preliminary Offering Memorandum Covenant Analysis Historical Financials on Fundamentals by Octus Recovery Analysis – 2022 Ontex Group NV – €400M Senior Notes due 2030 Sector Consumer Staples Sub-Sector Personal Care Products Sponsor/Ownership Groupe Bruxelles Lambert (20%), ENA Investment Capital LLC (15.1%), The Pamajugo Irrevocable Trust (3.6%), Mr. Joannes G.H.M. Niessen and Mont Cervin SARL (3.1%), Natixis (3%), Free Float (55%) Issuer Rating (M/S&P) B1 (Stable) / B+ (Positive) Issue Rating (M/S&P) B1 / B+ Call Protection NC2 (50, 25, Par) Change of Control & Portability 101 change of control put option; No portability Transaction Overview Belgium-based personal hygiene products manufacturer Ontex is launching a €400 million senior notes, or SNs, offering due 2030. Initial price talk for the SNs are in the high 5% area. Alongside the issuance, the group will also use €108.5 million of cash on balance sheet as well as expected proceeds of €85 million from the disposal of the group’s Brazilian operations to fund the refinancing transaction. Proceeds will be used to repurchase up to €400 million out of the outstanding €580 million 2026 SNs currently outstanding, through a tender offer[...]