Research
Company Insights

Top Forum Interviews: Recent sold off bonds/loans

  • Credit
  • Multi Sector
  • North America

Third Bridge Forum has extensive coverage of high yield bond and leveraged loan issuers, including interviews on 87% of the S&P Leveraged Loan 100 & 76% of the Bloomberg US HY Bond indices in 2022. Below is a selection of recent Forum coverage of issuers – plus one of many Key Insights – that have seen sell-offs in recent weeks across the consumer, TMT and healthcare sectors.

Bed Bath & Beyond – Solvency Risks & Outlook Amid Potential Bankruptcy

  • On Buybuy Baby valuation, “somebody could buy that brand for USD 2bn or USD 3bn” and be very happy with it. However, a notable consideration would be costly IT infrastructure set-up, due to the brand’s reliance on Bed Bath & Beyond’s systems.
West Marine – Demand Trends & Growth Outlook

  • “The problem is execution-wise [West Marine] haven’t been able to do a great job of being in stock on a lot of those items […] they’ve been out of stock on a lot of the key things that I need.”
Rite Aid – Q4 2022 Update & Strategic Outlook

  • Regarding Script Files, “There’s no doubt that that is the strongest piece of Rite Aid, 70% of their business is in scripts, so I think they’re valuable for many reasons. Obviously in my opinion I think pharmacies are oversaturated.”
US Air Ambulance Industry – Competitive Landscape & Q4 2022 Outlook

  • The No Surprises Act’s cut to membership revenue causes critical ripple effects in the air medical industry. Specialist feels this will combat over-saturation by driving base closures and horizontal consolidation.
US RCM (Revenue Cycle Management) Market – Q3 2022 Update & Claims Volume Outlook

  • RCM vendors will continue to offshore some clinical processes, allowing vendors to save c20% – for large organisations benefiting from economies of scale, this can be up to 40-50%.
More about how Third Bridge works with credit investors
GoTo (LogMeIn) – New Product Strategies & 2023 Outlook

  • GoTo has a high risk of customer churn – “every GoTo customer that wasn’t signed in the last year is probably at a risk of churning and there are probably two reasons.”
Urgent Care EMR Vendors – Greenway Health, Experity, eClinicalWorks & NextGen Healthcare – Competition & Contract Dynamics

  • Specialist posits that as consolidation and big tech interest in EMRs continue, there is a substantial threat of encroachment into outpatient and specialty EMR solutions.
Shutterfly – Q4 2022 Update & Strategic Outlook

  • Shutterfly “has the advantage of having a large customer base, a loyal following […] once people start storing their photos in a particular place, the migration costs seem, to people, to be high […] that stickiness of the product is maintained.”
Telesat – Lightspeed Potential & Business Strategic Positioning

  • “Although Lightspeed is a best-in- class technological offering, the ongoing delays are giving increasing opportunity for players such as Starlink, Project Kuiper and OneWeb to further develop their own capabilities.”
Veritas Technologies – Profitability & Competitive Positioning Outlook

  • Veritas has experienced slower mid-single-digit growth recently as it has not been focusing on new logo acquisition. PE sponsor’s focus on profitability optimisation led to focusing on the cheaper option of selling into existing install base.

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

For any enquiries, please contact sales@thirdbridge.com

Additional Content