How will the issuance of EUR 500 million senior notes due 2031 affect FORV's capital structure and liquidity?

The €500 million senior note issuance will add a sizable layer of long‑dated debt to FORV’s balance sheet, pushing both the gross‑debt‑to‑EBITDA and net‑debt‑to‑equity ratios higher. Assuming the proceeds are used mainly for refinancing existing obligations or funding working‑capital needs, the cash inflow will improve short‑term liquidity metrics (current‑ratio and cash‑conversion cycle) and give the company a larger liquidity buffer ahead of any capital‑intensive projects. However, the added interest expense (typical senior Euro‑bond coupons are in the 3‑4 % range for a 2031 maturity) will increase the interest‑coverage ratio pressure, and rating agencies may flag a modest “watch” if leverage exceeds its historical comfort zone. In practice, the capital structure will shift from a relatively equity‑biased profile toward a more balanced debt‑equity mix, marginally raising the weighted‑average cost of capital but also lowering the cost of financing versus equity dilution.

From a market‑technical standpoint, FORV’s shares have been trading near a recent consolidation range (≈ €13.5–€14.2) with modest volume and a bearish sentiment score of 30, suggesting limited upside momentum. The note issuance could act as a catalyst: if the proceeds are clearly earmarked for liquidity and strategic growth, the stock may find support around the lower band of the range as investors price in a stronger cash position. Conversely, if the market interprets the added debt as a leverage risk, a break below the €13.5 support could trigger short‑term downside, especially as senior‑note spreads tighten and the bond price climbs. Trading implication: monitor the first‑week pricing of the notes and any forward‑looking guidance on debt usage. A clean, well‑priced issue with a clear use‑of‑proceeds narrative may justify a buy‑on‑dip near support, while a pricing discount or vague deployment plan could warrant a short‑term sell or at‑least a defensive hedge using credit‑default swaps or put options to protect against a potential rating downgrade. Keep an eye on the EUR‑USD curve and Euro‑area credit spreads, as widening spreads would amplify the cost‑of‑capital impact and could pressure the equity price further.