Value Detective
Deep value, value, special situations, research analyst

Compelling Investment Opportunity In Syniverse's Capital Structure

Summary

Syniverse (formerly listed as NYSE:SVR) (NASDAQ:CG) is a leading provider of wholesale carrier services, analytics and intelligence solutions for MNOs, MVNOs, OTTs and enterprises. The company is currently undergoing a structural shift due to the replacement of its higher margin CDMA transaction clearing and settlement business with revenues from next generation services (LTE/IPX), which have not fully ramped up yet and expected to be lower margin but higher volume than CDMA.

The recent market selloff has created an interesting buying opportunity in Syniverse's capital structure given the attractive current yields and potential price appreciation through deleveraging and improving fundamentals.

The senior secured 1L term loans are "money good paper" and also benefit from a springing maturity feature,

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