DomusVi €500m 5.5NC2 Sr Sec: FV ~6.95% vs Expected IPT 7.25-7.50%
DomusVi (HomeVi SASU, B2/B) is in the market with a EUR 500m 5.5NC2 senior secured fixed-rate note maturing October 2031, alongside a EUR 1.5bn TLB at E+425-450 OID 99.5. The package refinances and extends the existing 2026 TLB by two years. Our fair value sits at ~6.95% mid, versus expected IPT in the 7.25-7.50% area. We see the bond clearing 6.875-7.125% with a constructive book; 7.00% represents fair NIC for new issue investors.
Deal Snapshot
Item Detail Issuer HomeVi SASU (DMVIFR) Format 144A/RegS, sr secured fixed Size EUR 500m Tenor 5.5NC2, maturing Oct-2031 Ratings B2 / B Use of proceeds Partial repay + A&E of residual EUR ~2bn TLB Total package EUR 2bn (incl. EUR 1.5bn TLB E+425-450, 99.5) Settlement 19-May-2026 Call schedule Par+50% / +25% / par from YR2 / YR3 / YR4 CoC 101
Rates Anchors (5.4y interpolated)
Benchmark Level Bund 2.77% OAT 3.20% EUR MS 2.93%
Sr Unsec Curve Read
Bond Maturity Mid YTM CLARFP 7.875% '30 Jun-30 6.10% CLARFP 6.875% '31 Apr-31 6.50% Curve interp Oct-31 Oct-31 6.55-6.60%
FV Bridge
Step Adjustment Clariane Oct-31 anchor (sr unsec, B comp.) 6.55% One-notch rating gap +25 to +40bp Secured vs unsecured uplift −50 to −75bp Sponsor / sector beta (Emeis-Orpea overhang) +20 to +30bp FV range 6.85-7.05% FV mid ~6.95%
Loan Cross-Check
TLB at mids (E+437.5 / 99.5) ≈ Euribor + 450bp ≈ ~6.55% YTM. Bond clears 30-50bp over pari loan for tenor and call differential → ~6.85-7.05%. Consistent with the curve read.
Spread Tabulation at 7.00% Print
Benchmark Spread Bund +423 OAT +380 EUR MS +407 Loan YTM +45 Clariane curve +42
Pricing Path
Stage Yield Expected IPT 7.25-7.50% FV mid 6.95% Likely print range 6.875-7.125% Implied NIC at 7.00% ~5-15bp
Key Risks
French nursing-home regulatory tape (TS reimbursement, staffing ratios). Occupancy normalisation. Sponsor-friendly indenture flexibility — watch portability and CoC carve-outs in the OM. CLO CCC-bucket pressure in adjacent FR services credits keeps sector beta elevated despite improving fundamentals.
Bottom Line
Constructive at 7.00% or above. Tight below 6.875%. Loan basis and Clariane curve anchor FV around 6.95%; the 25-50bp grind from IPT to print should leave a workable NIC for participants who get filled.
This note is for informational and analytical purposes only and does not constitute investment advice or an offer to buy or sell any security. Yields, spreads, and fair-value estimates are based on the author's analysis at the time of writing and are subject to change. Investors should conduct their own due diligence and consult appropriate financial, tax and legal advisors before making investment decisions.
