Deutsche Bank Urges Shorting Paragon’s €450 Million Bond as Fair Value Drops to 70-75 Cents
Updated
Updated · Bloomberg · Jun 22
Deutsche Bank Urges Shorting Paragon’s €450 Million Bond as Fair Value Drops to 70-75 Cents
2 articles · Updated · Bloomberg · Jun 22
Summary
Paragon’s 2030 senior secured notes should trade at 70 to 75 cents on the euro, Deutsche Bank analysts said, well below the bond’s current 83-cent price.
The bank advised investors to short the debut bond because it sees the UK business services group as overly reliant on acquisitions to drive growth, raising credit risk.
The €450 million high-yield note was issued by PCC Global in November as part of a broader refinancing, making Deutsche Bank’s call a direct challenge to the market’s current valuation.