GANNETT CDS USD SR 5Y D14 / TGNA

TEGNA Inc

Credit, TMT


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

Highlights

The presenter is long TEGNA Inc (TGNA)’s CDS trading in the 150 – 160 range and recommends pairing with an equity long position. TGNA is a US broadcaster that had received unsolicited bids for ~$20 per share prior to COVID-19 from Gray Television, Apollo Global Management (APO), Byron Allen’s Allen Media, and a consortium between Najafi Cos and the Christian broadcast group Trinity Broadcasting Network. Since then, two of the possible suitors have pulled their bids and two potentially remain. He believes a strategic acquirer would likely look to fund the purchase with leverage, increasing TGNA’s leverage position from its current 4x to ~6.5x. This added debt would increase the value of the surviving CDS despite an acquisition being ultimately positive for TGNA shareholders. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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