EFTA02624399

From: Paul Barrett < Sent: Monday, September 10, 2018 5:29 PM To: jeffrey E.; Richard Kahn Subject: RE: Bond idea Bonds traded up again. Will keep working them. Nothing done yet. Paul Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor, New York, NY 10019 From: jeffrey E. <jeevacation@gmail.com> Sent: Friday, September 07, 2018 11:12 AM To: Paul Barrett Richard Kahn a> Subject: Re: Bond idea ok On Fri, Sep 7, 2018 at 4:15 PM, Paul Barrett wrote: Update: 1 EFTA_R1_01834665 EFTA02624399 Bonds are trading up 1 point. New effective yield is - 7.50%. I still like the trade. 7.50% for 11 month paper with ample liquidity beyond the maturity of this bond. Paul Barrett Alpha Group Capital LLC 142 W 57 <https://maps.google.com/?q=142+W+57&entry=gmail&source=g> th Street, 11th Floor, New York, NY 10019 (o) (c) From: Paul Barrett Sent: Thursday, September 06, 2018 11:10 AM To: 'jeffrey E.' <jeevacation@gmail.com <mailto:jeevacation@gmail.com» Cc: 'Richard Kahn' < Subject: Bond idea Hi Jeffrey 1. Buy Casino Groupe (French supermarket company with operations in Europe and South America) bonds a. COFP 4.407% maturing Aug 2019 b. Yields 5.25% in EUR and then do a EURUSD cross currency swap into USD. This effectively creates a USD denominated bond yielding -8.60% c. Net leverage of 3.52x d. Rated BB by S&P 2 EFTA_R1_01834666 EFTA02624400 e. EUR 3bIn market cap f. Notional outstanding on this bond is EUR 674MM. Company had EUR 2.2bIn in cash and EUR 3.1bIn in undrawn credit facilities maturing in 2020-22 B. JPM overweight the credit h. I would do $3MM Paul Paul Barrett Alpha Group Capital LLC 142 W 57 <https://maps.google.com/?q=142+W+57&entry=gmail&source=g> th Street, 11th Floor, New York, NY 10019 {o) (c) please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 3 EFTA_R1_01834667 EFTA02624401