YAKACC TL B 2L USD

YAK MAT

Credit, Industrial/Transportation


Highlights

The presenter is long Yak Mat’s second lien term loans that trade in the mid- to high-70 range. Yak Mat (Yak) makes temporary access roads (mats) for the pipeline and power transmission markets for trucks and machinery to do project and maintenance work. Platinum Equity acquired a majority stake in 2018 for ~$1.26B (~5x EBITDA) from Jones Company and Beasley Forest, two lumber companies that founded Yak and maintained 49.9% ownership following the sale. Today, leverage to the first and second lien loans are 3.7x and 4.6x, respectively. He expects a 16%+ YTM from the second lien loan, which he deems attractive given the high quality of the business.

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Idea Discussion

Commentor 1 - 2 weeks ago

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