Steinhoff - Your lunch

All,

Please find our revised model here.

The version fixes a bug in NV, but more importantly now also allows for a simulation of PIK interest going forward, which helps with gauging the degree to which the sr. facilities will eat the lunch of the 21s/22s and 23s.

Positioning:

Our estimation of recoveries is becoming increasingly more bullish. That might as well be so, as we hold the 21/22s and 23s in equal amounts and the latter only benefit if value growth outpaces the giant PIK amounts at SEAG. It’s a relatively boring piece of PIKing debt with an OOM call - chiefly on Pepco equity.

Happy to discuss,


Wolfgang

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