EVENTS:   Best Equity Short Ideas Conference Call 12 - Zach Shannon/Corto Capital Advisors & Craig Huber/Huber Research Partners & Thomas Beevers /Forensic Alpha & Ed Steele/Iron Blue Financials & Bill Campbell/Paragon Intel - 12 Nov 25   Will AI Deflate the World? Macro Lessons from Three Industrial Revolutions and China - Manoj Pradhan/Talking Heads Macro - 13 Nov 25     ROADSHOWS: Forest Products Sector Equity and Commodity Research With Expertise in Distressed Debt - Kevin Mason /ERA Research   •   London   12 - 14 Nov 25       Buyside to Buyside Forum and Expert Calls across TMT, Consumer, Healthcare and Fintech - Andrew Peters /Revelare Partners   •   London   17 - 19 Nov 25       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   17 - 19 Nov 25      

Fortnightly Publication Highlighting Latest Insights From IRF Providers

Company Research

American Tire Distributors

Consumer Discretionary

Clear gap between the valuation of ATD’s stock and the valuation of its new term loan - this gap is being driven by credit investors who not only are spooked by the still elevated LTM net leverage level of 5.6x (even though the company has reduced it from 9.1x (2Q20)), but also do not understand the structural importance of the distribution business in the tire industry. The safety margin for error for the term loan is material and the ~7% yield is attractive.

Edition: 123

- 12 November, 2021