From: Paul Barrett ilMINIMMIN Sent: Thursday, November 1, 2018 4:56 PM To: Cc: Richard Kahn Subject: RE: LSC Bonds Purchased Jan 2017 @ 105.25. Yield at the time was 7.60%. • Bonds were trading at $97 before this announcement. They have spent the last year in a $97-$104 range. Sold off $4 in October. • At $97 that was a 9.52% YTW • At $107 it is now a 6.69% YTW • B rated issuer • Being acquired by Quad Graphics. Another B rated issuer whose 2022 bonds are yielding 6.66% YTW • If we sell at $107 we make $46K from price appreciation for a total return of $463K or 9% annualized. • Deal expected to close in the summer of 2019. Option 1: Do nothing. It is callable in a year at 106.56. So little price upside from here. Risk of the deal not closing and we trade back down to <100. Option 2: Sell at 107. Roll proceeds into Consolidated Communications bonds. Consolidated Communications 6.5% 2022 • 93.00 • YTW 8.64%; 3.3yr duration. • Broadband provider in the Northeast/Midwest. Stable business. ` 4.3x levered; $530MM of EBITDA in 2018. ` Only 40MM of term loans maturing before 2022. Bigger term loan maturing behind us in 2023. • JPM idea. Paul Paul Barrett Alpha Group Capital LLC EFTA_R1_01815410 EFTA02615639