bcm global senior secured bond fund citywire presentation_final

2.92%

10.58% 10.32%

3.27%

High Yield Bonds

Finland

SwedenNorway

Germany

France

PortugalSpain

Italy

Ireland

U.K.

AustriaSwitzerland

Denmark

Belgium

Netherlands

Lux.

Greece

Iceland

Buy (101.5) Sell (114.5)

Buy (99)

Sell (119.25)

Buy (115.75)

Overview /

Rationale

• French telecoms operator

providing TV, internet and

telephony to residential

consumers.

• Owns a well invested cable

network which allows

provision of higher speed

broadband products.

Pricing • 12.375% coupon

YTW • 13.0% (primary)

• 6.2% (Sep-13)

Financial • LTM Revenue EUR 891m

• LTM EBIDTA EUR 456m

Leverage • 5.2x net senior/total

Enterprise

Value

• Owned by Carlyle, Cinven

and Altice. Assumed EV of

8x EBITDA implying 35%

equity cushion.

Ratings • B2 / B (Positive Watch)

18

Overview /

Rationale

• Leading automotive and

industrial component supplier

• Strong market shares, robust

customer base and

technological leadership leads

to above average profit

margins and growth prospects

Pricing • 8.75% coupon

YTW • 8.75% primary

• 3.9% (Sept 2013)

Financial

• LTM Revenue Eur11.1bn

• LTM EBITDA Eur2.0bn

Leverage • 3.1x net senior/total leverage -

excl Continental stake currently

valued at c.Eur9bn (16/09/13)

Enterprise

Value

• Privately owned but estimated

>5.0x

Ratings • B+/Ba3

Source: Bloomberg, Babson Capital Europe

19

Overview /

Rationale

• Market leading forklift truck

manufacturer in Europe and

number 2 globally.

• Strong presence in emerging

markets has provided growth

through the downturn, whilst

40% revenues from servicing

and spares has further

bolstered trading.

• Strong liquidity with €500m

cash on balance sheet.

Pricing • 7.875%

YTW • 3.3%

Financial

• LTM revenue: €4.7bn

• LTM EBITDA: €730m

Leverage • 1.4x

Enterprise

Value

• 7.0x based on public market

capitalization.

Ratings • Ba3/BB-

Source: Bloomberg, Babson Capital Europe

1. Weighted average of two trades in April 2011

2. Weighted average of two trades in August 2012

3. Weighted average of three trades in February 2013

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Senior Secured Bond Fund

Portfolio Management Team