Antolin - comment

Following yesterday’s call, we are maintaining our positioning in the name. Upon several requests from the audience, management indicated again that the balance sheet measures and potential asset sales are targeted for H126. So we should not hear of anything significant before receiving FY25 accounts in April, which will be the time around which we might reduce either side of the trade. If Antolin can find sufficient assets to sell or money to raise, the 28s should be the primary target, removing the springing maturity on the senior facilities. Considering this is a family-owned company, we think management will do whatever it takes, including selling crown jewels, to postpone the restructuring. So, towards April, we expect to reverse our position, going long the ‘28s and short the ‘30s as asset sales and potentially a further government guaranteed loan or similar. For now, however, we continue to earn the coupon differential between the two bonds.