Lutech €400m 5NC2 SSN: FV 6.40% vs Expected IPT 6.75–7.00%
Italian IT services · B2/B · Apax · Refi-plus with sponsor distribution
Lutech SpA (B2/B, Apax-owned Italian IT services) is marketing a €400m 5NC2 senior secured note via BNPP and DB. Proceeds refinance the €338m 2027 SSN, repay a €100m term loan, and fund a €50m sponsor distribution. Pro forma Moody's leverage is 5.4x with FCF/debt in the mid-single-digits, capping rating upside. Against TeamSystem and Almaviva, fair value anchors around 6.40%. IPTs should emerge in the 6.75–7.00% area, leaving 25–50bp of NIC for primary buyers.
Deal at a glance
Term Detail Issuer / ticker Lutech SpA / LUTECH Size / structure €400m 5NC2 SSN, fixed, 30/360 Ratings B2 / B (stable) Use of proceeds Refi 5% '27s + €100m TLA + €50m divi + fees Call schedule NC2 / 50 / 25 / par B&D / JGCs DB (B&D), BNPP; IMI, NatWest, UBS, UniCredit, SMBC
How we got to fair value
TeamSystem is the cleanest read — Italian, sponsor-owned, B-rated, comparable size. The cluster trades S+325–335 across the curve. Almaviva sits 25–35bp tighter on a one-notch rating uplift to BB-.
Comp Rating Mid YTW ASW ALMAIN 5% Oct'30 BB- 5.90% S+300 TITANL 5.704% Jul'31 B- 6.18% S+325 TITANL 5% Jul'31 B- 6.26% S+335 TITANL 5.454% Jul'32 B- 6.20% S+325
Lutech screens one notch above TITANL on BBG composite, but the offsets are real: smaller deal, IT services vs software (lower margin, lower multiple), €50m divi on top of refi, and Moody's explicit flag that SSN/CFR alignment is borderline given the SSRCF size relative to total debt. Net result lands roughly in line with TITANL — Almaviva BB- territory is out of reach. Fair value: S+340–360, 6.30–6.50% YTW, central 6.40%.
Where it prints
Expected size €400m (no upsize signalled) IPT zone 6.75–7.00% area Expected reoffer 6.375–6.50% NIC capture 25–50bp on a 2x+ covered book Floor TITANL '31s ~6.20%; sub-6.25% unlikely
The Italian domestic synd group (UniCredit, IMI, SMBC) typically compresses NIC on home-market HY. Tight end achievable on a strong book; the divi recap and Moody's notching tail should resist anything through 6.25%. For primary buyers, a 6.50% reoffer is buyable; through 6.25% leaves no margin for sponsor financial-policy slippage on a credit already running with no metric headroom.
Analysis only. Not investment advice. Comp levels as of 29 Apr 2026 close. Levels and views subject to change once IPTs launch.
