GYMB Senior Secured First Lien Term Loan, 5.000%, 02/23/2018

The Gymboree Corporation

Credit, Consumer


Presented:01/25/2017
Price:N/A
Cap:N/A
Current Price:$65.40
Cap:N/A

Presented

Date01/25/2017
PriceN/A
Market CapN/A
Ent ValueN/A
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/SN/A
Ave Daily VolN/A
Short IntN/A

Current

Price$65.40
Market CapN/A

Publicly traded companies mentioned herein: Children’s Place Inc (PLCE)

Highlights

The presenter holds Gymboree senior secured first lien bank debt under the assumption that the company is set to undergo long-term restructuring as debts come due, at which point bonds can be converted to equity. Though Gymboree is currently challenged, the presenter sees upside in a bankruptcy and restructuring scenario, in which case debt, purchased at the equivalent of 4.5x EBITDA, can be transformed into ownership of a much healthier 2x EBITDA business as underperforming stores and bad leases are wiped out.

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Idea Discussion

Commentor 1 - 2 weeks ago

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