Intralot - Almost there

All,

Almost there.

We are expecting Intralot to outline a turnaround plan in late August / Early September. Please find our updated model here. Ahead of last week’s call, the bonds have been testing levels 10 points lower than current. This recovery pattern post calls has been a feature over the last year and we expect levels to slowly sink down to those levels agin. From current relative levels we would chose to be in the 21s. This is a change from our previous position, but is primarily owed to a more attractive risk-weighted upside/downside position than the 24s when both are trading at those lower levels. Also, the 21s are the more organised issue of the two, given that the consent of the latter may not be needed in a deal sought by the former.

Depending on relative trading pattern this position may again change over the coming weeks. Please play with the two tables on the front page to gauge sensitivities.

At levels we have seen ahead of the Q119 call, we would be investing some 6% of NAV in the name, reserving some capacity to inject fresh cash in any deal.

Tomorrow is the AGM.

Wolfgang