Ubisoft - comment

Unfortunately, we were not allowed to ask questions, but yesterday’s most ominous word was “re-profile”. Management emphasised several times that Ubisoft now had the liquidity to address its short term maturities, but that should not include the ‘27s. It would also have the liquidity to re-profile its liabilities - to push out its maturities. This sounds like an A&E to us, rather than an LME in the (modern) classic sense. There was no commentary on developments, details, or timing of the RCF. We remain long the ‘28s on the premise that without a big stick, the company can’t realistically drive too hard a bargain. Meanwhile, operations beat expectations. Bookings were up 12% YoY, and the number of sessions is also developing strongly.