TNTLOG TL 1L USD, TNTLOG 7 03/01/21 (Update)

CEVA Group PLC

Credit, Industrial/Transportation, Event Driven/Special Sit


Please note, this idea is an update to: Long - TNTLOG TL 1L USD, TNTLOG 7 03/01/2021 (1/18/2017).

Publicly traded companies mentioned herein: Apollo Global Management LLC (APO), Kuehne + Nagle (KNIN VX)

Highlights

The presenter remains long various portions of global contract logistics (“CL”) and freight management (“FM”) company CEVA’s debt stack, and he reiterated that CEO Xavier Urbain (previously with competitor Kuehne+Nagle) is solid and has been gaining traction on corporate initiatives. Additionally, he likes new CFO Peter Waller, who joined in October 2016, and said, “He continues to be hard charging and focused on cost savings”. While the turnaround has been slow and mired with well-documented false hopes, the business (which is roughly 75% CL, and 25% FM) will now benefit from some tailwinds and easy comps. Thus, he reasons that Apollo and Urbain are likely focused on maximizing EBITDA in 2017 and will try – again – for an exit via an IPO or sale of the business one year out. Despite the bonds trading 10+ points better than when originally presented, he remains long and sees the potential for 19-40% IRRs to be had, depending on the paper held.

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Idea Discussion

Commentor 1 - 2 weeks ago

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