Post on 06-Jul-2015
2.92%
10.58% 10.32%
3.27%
High Yield Bonds
Finland
SwedenNorway
Germany
France
PortugalSpain
Italy
Ireland
U.K.
AustriaSwitzerland
Denmark
Belgium
Netherlands
Lux.
Greece
Iceland
Buy (101.5) Sell (114.5)
Buy (99)
Sell (119.25)
Buy (115.75)
Overview /
Rationale
• French telecoms operator
providing TV, internet and
telephony to residential
consumers.
• Owns a well invested cable
network which allows
provision of higher speed
broadband products.
Pricing • 12.375% coupon
YTW • 13.0% (primary)
• 6.2% (Sep-13)
Financial • LTM Revenue EUR 891m
• LTM EBIDTA EUR 456m
Leverage • 5.2x net senior/total
Enterprise
Value
• Owned by Carlyle, Cinven
and Altice. Assumed EV of
8x EBITDA implying 35%
equity cushion.
Ratings • B2 / B (Positive Watch)
18
Overview /
Rationale
• Leading automotive and
industrial component supplier
• Strong market shares, robust
customer base and
technological leadership leads
to above average profit
margins and growth prospects
Pricing • 8.75% coupon
YTW • 8.75% primary
• 3.9% (Sept 2013)
Financial
• LTM Revenue Eur11.1bn
• LTM EBITDA Eur2.0bn
Leverage • 3.1x net senior/total leverage -
excl Continental stake currently
valued at c.Eur9bn (16/09/13)
Enterprise
Value
• Privately owned but estimated
>5.0x
Ratings • B+/Ba3
Source: Bloomberg, Babson Capital Europe
19
Overview /
Rationale
• Market leading forklift truck
manufacturer in Europe and
number 2 globally.
• Strong presence in emerging
markets has provided growth
through the downturn, whilst
40% revenues from servicing
and spares has further
bolstered trading.
• Strong liquidity with €500m
cash on balance sheet.
Pricing • 7.875%
YTW • 3.3%
Financial
• LTM revenue: €4.7bn
• LTM EBITDA: €730m
Leverage • 1.4x
Enterprise
Value
• 7.0x based on public market
capitalization.
Ratings • Ba3/BB-
Source: Bloomberg, Babson Capital Europe
1. Weighted average of two trades in April 2011
2. Weighted average of two trades in August 2012
3. Weighted average of three trades in February 2013
20
–
–
–
Senior Secured Bond Fund
Portfolio Management Team