HXN 13¾ 02/01/22

Hexion Inc

Credit, Industrial/Transportation


Publicly traded companies mentioned herein: Apollo Global Management LLC (APO), Hexion Inc (Private Company w/ Public Debt)

Highlights

The presenter said that he had been bearish on Hexion (“HXN”) early in 2017 due to the poor industry backdrop, but the fundamentals started to shift in the second half of the year, and he had to change his stance. Raw material margins have improved to levels well above what HXN saw in 2011, the prior peak, and earnings momentum continues to build this year on the back of capacity rationalization in China. With a capable management team running the business, he is broadly positive on HXN’s corporate bonds, but likes the 13¾ 02/01/22 1.5 lien as the “best pick” given the return profile compared to the 1st and 2nd liens.

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Idea Discussion

Commentor 1 - 2 weeks ago

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