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Value After Hours 05 18: Michael Kao, Urban Kaoboy; Alpha with Asymmetry; Capital Structure Arb

The Acquirers Podcast

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How to Make Money in Bankruptcy

If El Paso gets bought for cash, any bonds with that change of control language snap to par. But what about if it was a stock acquisition? The underlying debt essentially gets assumed by the acquiring company. That would actually trade well above at that point because that 8% senior secure revolver probably re-prices to yield 3% or 4%.

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