Italy-based cable solution provider Prysmian SpA aims to issue up to €1.0 billion of hybrid notes mainly to fund the planned acquisition of U.S.-based manufacturer of passive connectivity equipment Channell Commercial Corp., for a total cash consideration of $950 million plus an earnout of up to $200 million. We expect a strong operating performance for the company, mainly supported by a growing transmission division, translating into an S&P Global Ratings-adjusted EBITDA margin of 11.3% in 2025 (10.2% in 2024). The margin will improve to about 11.5-12.0% in 2026. In addition, we continue to anticipate free operating cash flow (FOCF) generation in excess of €1.0 billion per year over 2025-2026. The proposed issuance of hybrid notes with equity-like features protects the
