Matalan - Positioning

We have been shouting about this for a while. We have bought a 5% of NAV position in the Matalan SUNs above the offer price we are seeing, at a hopefully credible 76c/€ on the thesis of a par refinancing in a year’s time, or a 30-35% return. The bonds have a running yield of 13% today, and as per our previous note, we share the optimism that is underlying the current commercial strategy, whether or not there will be a little further priming in the interim. We realise that the super sr. tranches will have to roll in the interim, but do not perceive a major risk stemming from that. We will update our analysis in the coming weeks.