N&W Global Vending SpA (N&W) is planning to execute a tap issuance of €40 million on top of its existing €370 million senior secured notes maturing in 2023, with a 7.0% coupon rate. N&W will use the proceeds of the tap to fund the acquisition of two companies, Cafection and Ducale, in order to enter North America's office coffee service (OCS) market, and to enlarge its product portfolio offering. In our view, the group could face some execution risks in the integration process of recently acquired company Saeco Vending and of the two newly announced acquisitions. Additionally, N&W's growth with external opportunities could ultimately limit the company's ability to reduce its leverage. We are therefore revising the outlook on N&W
