NE 7¾ 01/15/24, NE 5¼ 03/15/42

Credit, Energy


Publicly traded companies mentioned herein: Noble Corporation PLC (NE)

Highlights

The presenter sees two bonds within Noble Corporation’s ~$4bn debt stack as particularly interesting. He likes the 7¾ 2024s and 5¼ 2042s at this time, and believes the recent sell-off in the bonds is overblown. Paragon Offshore was spun-off from Noble in August 2014, and on April 2, 2017 it announced that the settlement agreement between the companies - relating to Paragon’s bankruptcy - was being scrapped in-favor of a revised plan (that includes a Litigation Trust). In addition to the longer-dated bonds, the presenter thinks the Class B Litigation Trust units may be worth owning as well, but he focused the discussion on the risk/ reward with the 2024 and 2042 bonds.

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Idea Discussion

Commentor 1 - 2 weeks ago

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