How does the yield and covenants of these new notes compare to the existing €351 million issuance and to similar offerings by peers?

Yield – The additional €75 million tranche is being issued at the same 9.50 % coupon and “as‑issued” price as the existing €351 million series of senior secured notes that were placed in February 2024 and July 2024. Because the only material differences are the issuance date and price, the effective yield on the new notes will be virtually identical to that on the legacy issuance (≈9.5 % to 2029). By contrast, peer companies that have raised euro‑denominated senior secured debt with a similar 2029 maturity (e.g., European industrials and mid‑cap insurers) are typically pricing in the 7–8 % range, reflecting slightly stronger credit profiles or more market‑favoured covenants. Kronos’ 9.5 % coupon therefore sits on the high‑side of the peer set and signals a premium to compensate investors for its relatively modest credit rating and the absence of a “soft‑bullet” covenant package.

Covenants – The press release states that “with respect to the date of issuance and issue price, the Notes will have the same terms as the Existing Notes.” That means the covenant matrix—financial‑maintenance thresholds, asset‑cover ratios, and step‑down provisions—is unchanged. The notes remain senior secured, carry the same “financial‑test” covenants (e.g., minimum leverage, cash‑flow‑to‑debt ratios) and the same cross‑default and event‑of‑default triggers that were disclosed for the February/July 2024 series. Compared with peers, Kronos’ covenant package is fairly standard for a senior‑secured issuance, but it is not particularly tight; many comparable European issuers include additional “maintenance‑of‑ratio” buffers or slightly longer testing windows to give investors extra protection.

Trading implications – Because the new tranche simply replicates the existing 9.5 % senior‑secured structure, it does not materially improve the overall supply‑side risk profile of Kronos’ Euro‑bond universe. The incremental €75 million will increase the floating‑rate exposure of the 2029 vintage and may modestly pressure secondary‑market pricing, especially if the market is already discounting Kronos’ credit outlook. Yield‑seeking institutional desks may still find the 9.5 % coupon attractive relative to the 7–8 % peer median, but the high‑yield premium should be weighed against the unchanged covenants and the company’s operating leverage. A short‑term positioning strategy could involve a modest short on the note’s price if the market pushes yields down to match peer levels, while a longer‑term “buy‑and‑hold” may be justified only for investors with a high‑yield appetite and a view that Kronos can sustain or improve its financial ratios over the next two years.