Eutelsat - comment

Bigger investment promises less FCF for the bonds, and in our opinion, should put some pressure on this morning. 528 of the incremental LEOs is more than the 340 satellites that we had expected beyond Gen1. On our math, that would constitute approx. €100m of extra CapEx. However, we see the company in financially strong enough a position, so it's a mere yield decision for creditors if 5.625% YTM is enough for the incremental entrepreneurial risk they are taking.