No. of Recommendations: 4
Only one of their bonds is rated B (the 8.75’s of ’21), and it’s possibly significant that Moody’s rates that issue a notch lower at B3. Their other three outstanding issues aren’t rated CCC as you state. They are Caa1/CCC+. That difference might seem insignificant, but it’s not. Only one of their bonds yields around 7%, the nearby issue. The others offer fatter (aka, junkier) yields. E.g. the longest bond offers around 14%.

Two things should be noted: their yield curve is normal, and T&S shows price improvements from the March lows. But this question has to be answered: How much of that price improvement is due to company specifics and how much is due to free money flooding the market and inflating all financial assets?

I’m long their bonds and have been for a long time. But the position is deliberately small due to the fact that the company isn’t publicly traded. I agree with you. Those who took the company private look to be finally getting serious about making the company profitable again, instead of raiding it for its assets. But this is not a low-risk situation, and the time for buying their bonds is probably past.
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