European Event-Driven Analyst

Jesus Rodriguez Aguilar

Jesús is an Insight Provider (Event-driven) on the Smartkarma network, where he looks across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations. He has served as Economic and Business Advisor at the Spanish Congress in Madrid. Prior to that, he has worked in the City of London: as a Credit Analyst at Bloomberg; Event-driven associate at former boutique European Research; and doubled as Special Situations and Equity-linked VP (convertible bonds) at Merrill Lynch. Jesús has an MBA from the London Business School, a BA (Hons.) degree in Economics from the Complutense University in Madrid, and a BA (Hons.) in Law from U.N.E.D., also in Madrid.

KKR Potential Offer for The (W)Hole of Telecom Italia

KKR/Telecom Italia: Open Fiber Deal, Ongoing Restructuring, Strategies

Event-Driven

<ul>
<li>As a result of the deal with KKR, <a href="https://www.smartkarma.com/entities/telecom-italia-spa" target="_blank" data-smartkarma-citation="entities:21075:1" rel="noopener">Telecom Italia SPA (TIT IM)</a> projects a decrease in net debt of about €14 billion, bringing Net Debt/EBITDAaL from &gt;4.5x to around 2.0x.</li>
<li>This should guarantee the survival of Telecom Italia, but Vivendi is ready to challenge the decision. Equity is volatile as net debt represents 3.7x the market cap. Debt looks more interesting.</li>
<li>TLIT 6.875 FEB-2028 with YTM 6.624, or TLIT 7.875 JUL-2028, with YTM 6.838, likely to profit from a rating upgrade. Savings shares are unlikely to receive a dividend until 2027.</li>
</ul>


As a result of the deal with KKR, Telecom Italia SPA (TIT IM) projects a decrease in net debt of about €14 billion, bringing Net Debt/EBITDAaL from &gt;4.5x to around 2.0x.
This should guarantee the survival of Telecom Italia, but Vivendi is ready to challenge the decision. Equity is volatile as net debt represents 3.7x the market cap. Debt looks more interesting.
TLIT 6.875 FEB-2028 with YTM 6.624, or TLIT 7.875 JUL-2028, with YTM 6.838, likely to profit from a rating upgrade. Savings shares are unlikely to receive a dividend until 2027.


Telecom Italia SPA

KKR/Telecom Italia: Uncertainty Endures