Rentokil Initial Share Price (RTO)

Many thanks your full response, much appreciated.

Well, given the fall in the S&P since the offer they clearly over payed for Terminix. Some of the cost of the takeover is for cash which is going to be more expensive in todays market. It is however noticeable that the sp has picked up since they launched the prospectus for the bonds to cover this. The costs are certainly higher than their last bond issue, their previous 600M 8 year bond (in 2020) had a 0.5% coupon but I guess their margins are such that they can make it work.
As a business that basically involves someone driving around most of the day they have labour and fuel inflation headwinds. These have been mentioned by Terminix (and Rollins in their last presentation).
Terminix still have outstanding Legal issues over historic termite lawsuits so although RTO were well aware of them it is another risk factor. Takeovers are also expensive, Terminix have already spent a lot on this and the cost to RTO will be even higher.
On the positive the takeover will put the company in a very strong leading position , it is a fairly defensive sector and they should be able to keep/rebuild? margins over time. I really like the Pest Connect offering which gives them a clear edge over competitors and will help to reduce labour and travel costs ( this has been held back by the chip shortage but this is now easing).
I though H1 results were originally due yesterday? so we should get a better idea of how things are when these come out.

On June 20, 2022 issuer Rentokil Initial released international bonds (XS2495087137, XS2494946820, XS2494945939).
• In the amount of GBP 400 mln with the coupon rate of 5% maturing in 2032. The issues were sold at the price of 98.37% at par with the yield of 5.213%. The bookrunners of the placement were Banco Santander, Bank of China, Barclays, BofA Securities, HSBC, ING Bank, SEB, Wells Fargo.
• In the amount of EUR 600 mln with the coupon rate of 4.375% maturing in 2030. The issues were sold at the price of 99.663% at par with the yield of 4.426%. The bookrunners of the placement were Banco Santander, Bank of China, Barclays, BofA Securities, HSBC, ING Bank, SEB, Wells Fargo.
• In the amount of EUR 850 mln with the coupon rate of 3.875% maturing in 2027. The issues were sold at the price of 99.586% at par with the yield of 3.968%. The bookrunners of the placement were Banco Santander, Bank of China, Barclays, BofA Securities, HSBC, ING Bank, SEB, Wells Fargo.

Dunno Rugs bit I definitely smell a rat here.

Any idea what has caused the steady price decline we have seen over the past few months ?

He clearly did not feel this was quite enough so he topped it up by exercising a further £400K share option.