EFTA02624215.pdf

From: Paul Barrett < Sent: Friday, September 7, 2018 2:16 PM To: jeffrey E. Cc: Richard Kahn Subject: RE: Bond idea Update: Bonds are trading up 1 point. New effective yield is —7.50%. I still like the trad=. 7.50% for 11month paper with ample liquidity beyond the maturity of thi= bond. Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor,=New York, NY 10019 (o) (c) <=p> From: Paul Barrett Sent: Thursday, September 06, 2018 11:10 AM To: 'jeffrey E.' <[email protected]> Cc: 'Richard Kahn' Subject: Bond idea 1 EFTA_R1_01834295 EFTA02624215 Hi Jeffrey 1. Buy Casino Groupe (French supermarket company with operations in Euro=e and South America) bonds a. COFP 4.407% maturing Aug 2019 b. Yields 5.25% in EU= and then do a EURUSD cross currency swap into USD. This effectively creat=s a USD denominated bond yielding - 8.60% c. Net leverage=of 3.52x d. Rated BB by S&P e. EUR=3bin market cap f. Notional outstanding on this bond is =UR 674MM. Company had EUR 2.2b1n in cash and EUR 3.1bIn in undrawn credit =acilities maturing in 2020-22 g. JPM overweight the cred=t h. I would do $3MM =/P> Paul Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor,=New York, NY 10019 (0) (c) <=p> 2 EFTA_R1_01834296 EFTA02624216