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P Pitch Archive Stock pitches across investing competitions
← Spring 2018

Digicel’s 2020 bonds

null pitch short Jingjing Huang ’19, Matthew Mann ’18, and Viraj Vora ’19

Thesis

The team believes that Digicel's bonds are at risk due to the company's high debt levels and challenging market conditions, making them a poor investment.

Did it work?

worked confidence: low

The short thesis on Digicel's bonds was driven by high leverage and market headwinds, and over the ~8 years since the pitch these risks materialized: Digicel repeatedly restructured its debt (exchange offers around 2018, maturity extensions in 2020, and a comprehensive 2022 restructuring in which bondholders took substantial haircuts and equity), confirming that the bonds were indeed at risk. With no price data provided, the verdict rests on these thesis events rather than measured returns, so confidence is limited.