tag:blogger.com,1999:blog-6321089372587128676.post3756492777742649595..comments2023-10-17T10:01:00.917-04:00Comments on Distressed Debt Investing: Lodgenet, School Specialty, and PowerWave filing for bankruptcyUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6321089372587128676.post-89553276834672396122013-02-01T11:03:36.697-05:002013-02-01T11:03:36.697-05:00I'm calling the top of the HY market. NXP just...I'm calling the top of the HY market. NXP just priced an 8-yr fixed rate note at 5.75%.<br /><br />Anyone buying this stuff needs their head examined.<br /><br />2013E Adjusted EBITDA of $1,300m but will generate only $400m FCF given maintenance capex + restructuring outflows + interest expense + working capital builds.<br /><br />This security is structurally subordinate to $3.5bn of secured (including a fully drawn revolver).<br /><br />As a reminder to anyone running an insurance company (or fixed income fund, CLO, etc.) and younger than 3 years old -- EBITDA fell from <br />$1,000m to $(200)m in one year following a semi cycle top.<br /><br />So you have the privilege of getting screwed 2 different ways: if we get deflation, enjoy watching your recovery at 0. If (when) rates start to rise, enjoy watching mark-to-market losses on your fixed rate paper.<br /><br />Yield hogging at it's finest.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-83035002917990828172013-01-28T21:06:34.209-05:002013-01-28T21:06:34.209-05:00any thoughts on LNET? generating operating profit...any thoughts on LNET? generating operating profitss, though it is a melting ice cube.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-39945569071624548092013-01-28T15:17:31.232-05:002013-01-28T15:17:31.232-05:00Some good commentary here --
http://quinzedix.blo...Some good commentary here --<br /><br />http://quinzedix.blogspot.com/2013/01/school-specialty-375-convertible.htmlAnonymousnoreply@blogger.com