This chapter explores how certain companies have benefited from the changes in consumer behavior caused by the pandemic, resulting in significant increases in their EBITDA. However, it raises concerns about their potential over-leveraging if earnings revert to pre-pandemic levels.
On this week’s podcast the Americas Core Credit by Reorg team discusses highlights from this week as well as a look ahead at the upcoming week, plus this week our podcast features a discussion on (a) how certain companies that actually benefited from the pandemic (grill companies, pool companies, home improvement businesses) took advantage of the recent spike in performance by borrowing money, using the proceeds to pay their owners a dividend, and then taking the company public and (b) how these companies and their lenders could be in trouble once consumer behavior reverts to pre-pandemic levels.
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