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  "documentTitle": "Amcor plc (pro forma Amcor-Berry Global combination) (AMCR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-03-10 00:00:00",
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  "pageNumber": 39,
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      "kind": "callout",
      "text": "Credit rating — A downgrade in our credit rating could increase our borrowing costs and negatively affect our financial condition and results of operations: In addition to using cash provided by operations, we regularly issue commercial paper to meet our short-term liquidity needs. Our credit ratings are important to our ability to issue commercial paper at favorable rates of interest. A downgrade in our credit rating could increase the cost of borrowing or the fees associated with our bank credit facility, or the credit spread incurred when issuing long-term debt in the capital markets.",
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      "kind": "callout",
      "text": "Having To Borrow Commercial Paper To Pay Down Long-Term Debt Is Worrisome. Why Couldn't Amcor Issue More LT Debt?",
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    {
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      "kind": "metric",
      "text": "short-term debt: 2,662.5",
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      "kind": "paragraph",
      "text": "We observe that Amcor has become more aggressive in its usage and financial presentation of commercial paper (CP). CP is short-term borrowing, typically for less than 270 days. However, Amcor recently elected to classify all of its CP as a Long-Term Debt, claiming it has “an intent to refinance such obligations for the long-term”. This aggressive classification makes Amcor’s liquidity appear better than it actually is. Yet, the CP market is generally open only to the strongest companies, with investment grade (IG) credit ratings. Amcor’s credit rating is BBB, putting it on the cusp between IG and junk status. If its financial condition worsens, or credit markets worsen, Amcor’s access to the CP market could be materially restricted.(1)",
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      "kind": "quote",
      "text": "Credit rating — A downgrade in our credit rating could increase our borrowing costs and negatively affect our financial condition and results of operations: In addition to using cash provided by operations, we regularly issue commercial paper to meet our short-term liquidity needs. Our credit ratings are important to our ability to issue commercial paper at favorable rates of interest. A downgrade in our credit rating could increase the cost of borrowing or the fees associated with our bank credit facility, or the credit spread incurred when issuing long-term debt in the capital markets. — Amcor Annual Report Risk Factor",
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      "text": "Source: Amcor H2 20 Financial Results",
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      "kind": "source-note",
      "text": "Source: Amcor 2019 Annual Report",
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      "text": "Short-term debt table showing commercial paper reclassification",
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      "text": "Cash flows from financing activities table",
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      "kind": "title",
      "text": "Warning: CP Dependence Rising",
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