Flora - Milking Time - Model Update - Positioning

Flora is a familiar credit for us, having previously achieved a highly successful outcome on the prior subordinated bonds. Following our detailed work last month, we have updated our analysis to incorporate the Q3 results, comparing actual performance against our forecasts and making minor adjustments to our forward projections accordingly. Many of the key risks we previously identified persist, most notably the ongoing lack of meaningful cash deleveraging. We also remain mindful that the revised capital structure introduces several constraints, including a change in governing law. Balancing these structural considerations against our updated cash flow and deleveraging projections, we have reached an investment decision encompassing the full capital structure.