Booking Holdings 3-tranche EUR: FV MS+65/+100/+130 vs IPT MS+100/+137.5/+170
Booking Holdings 3-tranche EUR: FV MS+65/+100/+130 vs IPT MS+100/+137.5/+170
Booking Holdings (A3/A-) is in the market with a three-tranche EUR senior unsecured benchmark across 4Y, 8Y and 13Y maturities at IPTs of MS+100 / +135–140 / +170 area. Proceeds target general corporate purposes including share repurchases and debt redemption. Triangulation off the issuer's existing EUR curve and a rating-matched reverse-Yankee comparable points to fair value of MS+65 / +100 / +130, implying ~35–40bp NIC at IPT and a likely reoffer in the MS+70–75 / +108–115 / +140–145 range.
Deal snapshot
| Tranche | Maturity | IPT | Call |
|---|---|---|---|
| 4Y Fixed | 11 May 2030 | MS+100a | 1m par call |
| 8Y Fixed | 11 May 2034 | MS+135–140a | 3m par call |
| 13Y Fixed | 11 May 2039 | MS+170a | 3m par call |
Issuer curve build
The issuer's own outstanding EUR benchmarks bracket each new tranche directly. Curve progression is broadly linear, steepening modestly into the long end.
| Reference bond | Tenor | I-Spread |
|---|---|---|
| 4.25% May 2029 | 3.0y | +50 |
| 3.000% Jul 2030 | 4.2y | +67 |
| 4.125% May 2033 | 7.0y | +93 |
| 4.750% Nov 2034 | 8.5y | +103 |
| 4.125% Sep 2038 | 12.3y | +125 |
| 4.000% Mar 2044 | 17.8y | +161 |
Triangulation
Cross-checked against a leading life-sciences A3/A- reverse-Yankee with a deep EUR curve trading consistently 30–45bp through the issuer — a reasonable premium for sector cyclicality and a younger EUR curve.
| Tranche | Anchor points | Curve FV | Comp + basis | Composite FV |
|---|---|---|---|---|
| 4Y | May 29 / Jul 30 | +65 | +35 + 30 | +65 |
| 8Y | May 33 / Nov 34 | +100 | +68 + 32 | +100 |
| 13Y | Sep 38 / Mar 44 | +130 | +88 + 42 | +130 |
Reoffer scenarios
| Tranche | IPT | FV | NIC at IPT | Expected reoffer |
|---|---|---|---|---|
| 4Y | +100 | +65 | 35 | MS+70–75 |
| 8Y | +137.5 | +100 | 37.5 | MS+108–115 |
| 13Y | +170 | +130 | 40 | MS+140–145 |
Size and landing
Three-tranche "benchmark" sizing typically implies a minimum EUR 500m per leg, with aggregate likely in the EUR 1.75–3bn range subject to demand allocation. IPT concession of ~35–40bp across the stack leaves room for 25–30bp tightening to reoffer, in line with recent A-rated EUR multi-tranche prints. The 4Y is the cleanest tranche and likely tightens the most; the 13Y carries the largest residual NIC at final given duration risk and the buyback element of the use of proceeds.
