TAP - comment

Tap have paid down the 2023 bonds without also addressing the 2024s, which means the final leg of our thesis did not materialise. Nonetheless, it’s been a successful trade and we are ready to shelve the name. This morning’s H1 results confirmed the continued turnaround of the company, as did the pay-down of the bonds and the same amount of leases from H123 FCF alone. The future holds a tie-up with Lufthansa and an easy refinancing, but the bonds are only so attractive now and we will be recycling the capital in the near future.