EMLNA TL 1L USD

Endemol Shine

Credit, TMT


Please note this is an update to EMLNA TL 1L USD, EMLNA TL 2L USD — Long, which was last presented on Aug 8, 2017. 

Publicly traded companies mentioned herein: Apollo Global Management LLC (APO), Hasbro Inc (HAS), Lions Gate Entertainment Corp (LGF), Netflix Inc (NFLX), Walt Disney Co/The (DIS)

Highlights

The presenter is long the first and second lien term loans of Endemol Shine Group. He believes that either DIS will buy out Apollo Global Management’s 50% stake in Endemol Shine or the company will refinance their entire capital structure within the next year because the first lien TL matures in August 2021. The first lien TL is ~$1.33B, trades at ~98.5, with a yield of 8%, and a 10% total return to one year takeout (either through DIS’s buyout or refinancing). The second lien TL is ~$450MM, trades at ~99, has an ~11% YTM, and 12% yield to one year takeout via the refinancing. The presenter views this as a credit arbitrage opportunity and between the two TLs, he sees the potential for a 10 - 12% return within one year. 

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