Pair Trade: ARGID 5.25% 08/15/27 & TRIVIU 5.5% 08/15/26, TRIVIU 8.5% 08/15/27

Ardagh Packaging and Trivium Packaging

Credit, Industrial/Transportation


Publicly traded companies mentioned herein: N/A

Highlights

The presenter has set up a pair trade predicated on a shift from glass to metal packaging, expressed through being short Ardagh Packaging bonds and long Trivium Packaging bonds. The thesis centers around a deterioration of FCF in the glass business as growth slows, leading to an inability to pay down near-term maturities. There are a variety of ways to express this scenario, with his preference being to short the ARGID 5.25% 08/15/2027 bonds and be long the TRIVIU 5.5% 08/15/2026 and/or TRIVIU 8.5% 08/15/2027 bonds. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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