AKU 7 11/01/2025 & AKU 7½ 08/01/2028

Akumin Inc

Credit, Healthcare


Publicly traded companies mentioned herein: Akumin Inc (AKU)

Highlights

The presenter is long Akumin Inc (AKU)’s senior secured notes due November 2025 and August 2028. AKU started as a radiology and oncology rollup before making a transformative acquisition last year. Its capital structure consists of just over $900MM of secured debt, including the two secured notes he owns ($475MM of 7% coupon notes due 2025 trading at 80, $375MM of 7.5% coupon notes due 2028 trading at 73), followed by $385MM of unsecured debt held by Stonepeak, an investment firm that specializes in infrastructure and is making its first foray into healthcare. Overall, he thinks there is solid downside protection on these ~16% YTM bonds based on the current prices, the substantial unsecured debt further down in the capital structure, and a structural tailwind as volumes shift from hospitals to outpatient.

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Idea Discussion

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