OHLA - comment
OHLA’s desire to call the bonds places a floor at 100c/€ (the call price); the bonds should move higher on this news (they currently trade at 94%). The bonds are callable from August 2026, but we think a call is more likely after the Services business and Canalejo have been sold, and that would be at least year-end 2026. Unless Canalejas and the Service business are close to a sale, a syndicated bridge would be needed to take the bonds out. OHLA has a difficult relationship with its banks and may struggle to get the necessary commitments unless it gives meaningful guarantees to lenders. The rationale for repaying the SSNs is also concerning; OHLA wants to focus more on its concessions business (which got the company into trouble before) and return to paying dividends, which is unlikely to entice banks to extend further credit.