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  "documentTitle": "Aerojet Rocketdyne Holdings, Inc. (AJRD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-04-09 00:00:00",
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  "notes": "Uses the 'Déjà vu' framing to establish a pattern of behavior in failing companies.",
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      "text": "We suspect this refinancing was done opportunistically by management before its financial condition deteriorates.",
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      "text": "Given our belief that Aerojet business will come under pressure, we find that it recently started talking up acquisitions or buying new product lines and increased its credit facility from $750M to $1.0BN. We suspect this refinancing was done opportunistically by management before its financial condition deteriorates. Spruce Point has successfully pinpointed other businesses that have pivoted towards acquisitions ahead of financial collapse. Déjà vu: a successful short we believed was looking for acquisitions to cover growing financial and business strains, refinanced its credit facility ahead of problems surfacing. In addition, MacDonald Detwiller acquired DigitalGlobe and rebranded itself Maxar Technologies, which foreshadowed its ultimate share price collapse.",
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      "text": "Our No. 1 priority for capital deployment is [mergers and acquisitions] — Eileen Drake, CEO of Aerojet Rocketdyne.",
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      "text": "Source WSJ Aug 2017; Source: Credit Facility refinancing March 2017 (8-K)",
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      "kind": "source-note",
      "text": "Source: Space News – Sept 19, 2018; Source: Credit Facility refinancing Sept 20, 2018 (8-K)",
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      "kind": "title",
      "text": "Déjà vu: When Business Is About To Deteriorate, Start Talking Up More M&A",
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