Adler - comment

Adler are iteratively refinancing first their 1L and now their 1.5L bonds - the latter with a new 10% PIK at 0.75% OID. The 1.5L is de-risking from the refinancing of the 1L at lower rates. We are not sure of the structural changes associated with the refinancing (same maturity) as it requires the approval of even the 2L perps. However, we can’t imagine that would be withheld. The new bonds will also have minor call protection for years one and two. The beneficiary should be our position in the 2Ls, in theory.