EMLNA TL 1L USD, EMLNA TL 2L USD

Endemol Shine

Credit, TMT


Public companies mentioned herein: Apollo (APO) and Fox (FOXA).

Highlights

Endemol Shine is a television content producer 50/50 owned by Apollo (APO) and Fox (FOXA). The joint venture was formed in 2014 when Fox’s Shine unit was combined with Apollo’s Endemol. Roughly 70% of the company’s content is non-scripted, with shows including Big Brother, Master Chef, Deal or No Deal. The balance of the company’s content is scripted, with a portfolio of shows including Black Mirror, Peaky Blinders and Broadchurch. The presenter believes TV content is increasingly attractive in the current environment and is far less volatile than film content in terms of hits or misses. While he is long both the company’s first and second lien debt, he regards the second lien as the more attractive opportunity, with a total return potential of about 35 percent and the possibility of being taken out entirely.

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Idea Discussion

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