Worldline - comment

Q3 revenues were on target. Management had a useful slide explaining the structure of the overdraft cash pooling / upstream loan - largely in line with our IM, only with bigger numbers (we only calculated the minimum required), netting to the same outcome. On request, management clarified that it would need at least €600-€750m to run the business - i.e., it needs the subsidiary's cash to remain where it is. Only the holdco Cash could apparently be reduced (would come out of subsidiaries once offset by cancelled overdrafts). This is enough to address the ’26 Convertible, but the ’27 SUNs will need a financing solution. The company’s efforts to raise cash towards that have only been boosted by a small additional divestiture, planned for Q126, of its US/Canada business worth an estimated €70m. Bonds are rising slightly this morning on the cash pooling disclosure, but fundamental problems persist into the capital markets day in two weeks time.