Ziggo - Priced for Perfection - Initiation

At 82.9 on the €2033s, we have revisited Ziggo ahead of Q3 results and Liberty Global’s planned spin-off. There are reasons to be constructive: broadband has returned to net adds, postpaid is recovering and a listing could provide a route to refinancing and deleveraging. But the market is looking beyond the improving commercial picture. VMO2’s selloff has dragged sentiment across the telecom sector, while Altice’s restructuring is a reminder of what happens when high leverage meets limited cash generation. Ziggo still faces a substantial 2029–30 maturity wall, and the pace of debt reduction remains the key question. We have worked through what the deleveraging plan can realistically deliver, and we’ve agreed on a strategy in these binary bonds.