SFLY 8 ½ 10/02/26

Shutterfly LLC

Credit, Consumer, TMT


Publicly traded companies mentioned herein: Apollo Global Management Inc (APO)

Highlights

The presenter is long Shutterfly’s secured notes (SFLY 8 ½ 10/02/26), which were issued in October 2019 and trade at ~93. Shutterfly Consumer is the leading e-commerce platform for personalized photo products (e.g., holiday cards, photo books, etc.); this business segment has been a major COVID-19 beneficiary. The company also has its Lifetouch business, which is the largest provider of school photo services (e.g., picture day). Unlike the Consumer segment, Lifetouch has seen a dramatic negative impact from school closures. Over the next ~18 months, the presenter expects net secured leverage to fall from ~5.5x to ~3x based on strong FCF generation and an expanding margin profile. As this plays out, the presenter expects the security to trade to call (105+), yielding an IRR in the mid-teen% – 20% range.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.