Redeye provides an initial comment on Relais issuing cEUR50m in hybrid bonds to replace its recent bridge facility (cEUR37m) and for general corporate purposes. The company’s intention to raise equity or equity-like capital for this purpose was well-known. In contrast to our projection of a share issue, this solution results in higher leverage (as we calculate it) but less dilution for common shareholders. Thus, we believe this new capital structure provides more torque for common shares.
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