EVA 6.500 01/15/2026

Enviva Inc

Credit, Industrial/Transportation, Energy


Publicly traded companies mentioned herein: Enviva Inc (EVA)

Highlights

The presenter is short the 2026 unsecured notes of Enviva Inc (EVA), a wood pellet manufacturing company with facilities in the US that services mostly European and Asian utilities companies through long-term contracts. There has been recent management turnover, which makes sense to the presenter given the divergence between the picture previous CFO Shai Even would have painted and what is actually going on in the business. The stock has fallen ~90% YTD, suggesting that the market has a similar view of the company. Based on his bearish outlook, he expects the company will need rescue financing in the coming quarters, in which case he models a 50 – 60 cent recovery on the unsecured 2026 notes. Discounting that back, he sees potential for this to trade in the 30 – 40 range compared to the current price of 68.

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Idea Discussion

Commentor 1 - 2 weeks ago

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