BGG - Briggs & Stratton: The Equity Is Out Of Money
Misvaluation
The relative valuation between the senior notes and the Briggs & Stratton (BGG) equity doesn't make sense. The senior notes most recently traded around 32-32.5 cents on the dollar. Let's use the mid price of 32.25, and given the ~$195 million face value, indicates a market value of ~$63 million (195 x 0.3225). While junior to the senior notes, BGG has an equity market cap of ~$81 million. This seems like a misvaluation as an result of silo-ed investors not looking at the entire capital structure.
Time is Running Out
While I