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  "documentTitle": "Aerojet Rocketdyne Holdings, Inc. (AJRD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-04-09 00:00:00",
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  "pageNumber": 10,
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  "notes": "The slide uses a 'Spruce Point Adj. Valuation' to demonstrate that the company's true leverage is significantly higher than reported by the Street.",
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      "text": "Aerojet is significantly more levered and valued than appears on its surface. We believe the market is ignoring significant environmental and post-retirement benefit costs.",
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      "text": "Net Debt / EBITDA: 5.7x",
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      "text": "Aerojet is significantly more levered and valued than appears on its surface. We believe the market is ignoring significant environmental and post-retirement benefit costs. In addition, there are tail risks such as DOJ civil fines and tax payments from audits currently being conducted by the Federal and State tax authorities. Once it becomes clear that Aerojet’s decision to start acquisitions is a strategy to cover revenues that will organically decline, we believe investors and creditors will pay closer attention to its true leverage, which we believe is closer to 5x on a Net Debt to EBITDA basis.",
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      "text": "Source: Company financials, Bloomberg consensus and Spruce Point estimates. Note: Convertible notes can be currently converted into stock at the holders' option. The fair market value as reported 12/31/18 by AJRD is $441.1m",
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