HSE - comment

We expect HSE's last-minute revised offer to succeed, although we are expecting another extension to the weekend now, since the last extension runs out this afternoon. The PIKs had been trading into the transaction around 60c/€ and were expecting more than the initial 65-70c/€ offer. The €100m of pari passu SSNs on offer now require a lower discount, depending on how aggressively they are taken up.
The new levels are:
Level Original ratio Revised ratio
Base Participation 60.0% 70.0%
Special I 67.5% 80.0%
Special II 75.0% 90.0%