Primary Analysis: Rekeep 2029 SSNs’ 10% Initial Price Talk Yield Compensates for Call Risk, Energy Business Sale Uncertainty, Though Cash Generation Prospects Remain Weak

Credit Research: Harry Dixon, CFA, Nikhil Varsani Legal Research: Lucrezia Sperzani, Azzurra Camillieri Reporting: Beatrice Mavroleon, Jihye Hwang Relevant Items: Prelim. Offering Memorandum Covenant Analysis Historical Financials on Fundamentals by Octus Secondary Analysis – October 2024 SSNs 2026 Primary Analysis – 2021   Rekeep SpA – €350M Senior Secured Notes Due 2029 Sector Industrial Sub-Sector Environmental & Facilities Services Sponsor/Ownership MSC Società di Partecipazione tra Lavoratori SpA Issuer Rating (M/S&P) B3 (Stable / B (Stable) Issue Rating (M/S&P) B3/B Call Protection NC1.5, 50% coupon thereafter until date of maturity (par) Change of Control & Portability 101 change of control put option; No portability Specified Asset Disposal Mandatory Redemption Until, but excluding, the maturity date, if the restricted group receives net proceeds from a Specified Asset Disposal, the notes will be subject to a special mandatory redemption of the new SSN at a premium of 33% of the coupon, with at least €200 million of original principal remaining outstanding.“Specified Asset Disposal” means any disposition by the restricted group to a third party of capital stock, properties, activities or assets in a single transaction or series of related transactions for which the restricted group receives net proceeds in excess of €15 million.[...]