ANGI 3⅞ 08/15/2028

Angi Inc

Credit, Consumer, TMT


Publicly traded companies mentioned herein: Angi Inc (ANGI), IAC/InterActiveCorp (IAC)

Highlights

The presenter is long the 3.875% bonds of Angi Inc (ANGI) that are due in 2028. This is a $500MM issuance currently trading at 79 and there is no other debt on the balance sheet; due to a covenant that caps the first lien debt at 3.75x leverage, there is a limited ability to add debt ahead of these notes. ANGI also has $391MM of cash, leaving it with just over $100MM of net debt on its balance sheet, along with a $2.2B market cap. Further, IAC has an 85% equity stake and is unlikely to walk away from this, which he considers a positive since IAC is one of the best internet investors in the world. While the YTW is just 8.3%, the presenter thinks the debt is well covered, especially with the company potentially inflecting positively in the next 12 – 24 months as its investment in the direct services business winds down. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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