HG Vora has a curated approach to investing in mispriced, sub-investment grade corporate credit, typically focusing on credits that are well covered by existing assets and/or the company’s cash flows. We seek out secondary debt opportunities that are often trading at a discount to par, offering convexity in the event of a par paydown or refinancing prior to maturity. Additionally, we partner with investment banks and companies on harder-to-price primary issuances and target investing in situations that provide outsized relative and absolute yield.

HG Vora has an established track record of crafting financing solutions, often in the form of secured debt, to public and private companies that are either seeking to grow through acquisitions, refinance upcoming maturities or for general corporate purposes. Through our deep sector expertise and broad relationships, the team is able to source and structure attractive terms in unique primary issuance opportunities.

This strategy focuses on investments that are trading at a meaningful discount from their intrinsic value in companies that are experiencing financial distress due to an overleveraged capital structure, secular headwinds or specific idiosyncratic issues. We typically own the fulcrum security with the goal of partnering with the company and its advisors to take the business through bankruptcy, restructuring or liquidation. Accordingly, HG Vora often takes an active role on creditors’ committees, advising the company through the restructuring process to emerge with a more sustainable capital structure, and monetizing these investments post-bankruptcy or after the investments (e.g., distressed bank loans, bonds, post-reorganization equity and/or other claims) have re-rated due to a specific catalyst.

As deep value investors, our equity strategy targets companies that trade at a material discount to their intrinsic value, produce strong recurring free cash flow, have embedded optionality from misunderstood assets and where multiple paths exist to unlock value. The investment team typically leverages our deep industry knowledge across consumer, media and real estate-oriented businesses as well as experience in complex situations to identify and drive value in its equity investments.