EFTA01378342.pdf

INTERNAL USE ONLY DO NOT DISTRIBUTE IN PART OR IN WHOLE Corporate Credit > U.S. High Yield Ply Gem Industries Inc. Updated: September 9, 2015 Trade Idea: o Buy Ply Gem 6.5% Senior Unsecured Notes due 2/1/2022 Investment Rationale: o Ply Gem offers compelling relative value trading at 6.6% yield / +484 OAS. Ply Gem trades wide to the index but should tighten as management executes on business strategy of improved manufacturing efficiencies, cost controls and higher margins. Industry tailwinds remain strong with expected growth in the high single digits over the next 18 months. Ply Gem will benefit from improved volumes and better pricing power resulting in an improving credit profile. While pro forma leverage remains high, I expect EBITDA growth and positive free cash flow generation to reduce leverage and improve the credit profile in the 2H 2015. o Ply Gem has no meaningful near term debt maturities and ample liquidity. In addition, TEV provides support through the bonds. Recommendation(s): Rat nio. Issue fun View Trade Horizon triker Cpt Maturity SEP Moody Ccy Sire OAS into T. I toss ISIN 12 Month EMI 1/1/2022 68% 484 990 100.0 90.0 07294164062 • Levels as of 06/01/2015 Deutsche Asset 5 & Weah Management CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0075511 CONFIDENTIAL SDNY_GM_00221695 EFTA01378342