HSE - comment

The cash sweep funded bond repayment (at par) adds 10bps to our P&L. PF the sweep, HSE will have €41m of cash on hand (in line with our model) and €35m RCF availability. Continued consumer weakness in Germany is hampering the speed at which the bond price is moving to the 69% fair value we estimate for the business.

Notional Position 6.4% of NAV, Entry price 40c/€, Sweep at par (€10m/€330m) = 3%. P&L gain = 6.4% * (3%*(100-40) = 0.1%