Anuvu Corp.

Overview Key strengths Key risks Sufficient liquidity to cover operational needs over the next 12 months. Leverage well above 10x. Long-standing relationships with key airlines for media content. Increasing competition from low-Earth-orbit-based providers. Dependence on wholesale satellite providers. Negligible free operating cash flow (FOCF) generation. Generates 42% of revenue from Southwest Airlines. While liquidity has tightened due to increased interest rates, Anuvu?s near-term liquidity is supported by access to $37.5 million of additional committed funding from its existing lenders. Still, we expect the company?s liquidity cushion to narrow somewhat over the next year. We project Anuvu?s FOCF deficit in 2023 will be $5 million-$10 million as higher interest expense offsets growth in revenue and EBITDA. After the first quarter of

...Anuvu Corp.'s liquidity is sufficient to cover its near-term needs. While liquidity has tightened due to increased interest rates, Anuvu's near-term liquidity is supported by access to $37.5 million of additional committed funding from its existing lenders. Still, we expect the company's liquidity cushion to narrow somewhat over the next year. We project Anuvu's FOCF deficit in 2023 will be $5 million-$10 million as higher interest expense offsets growth in revenue and EBITDA. After the first quarter of 2023, the company is no longer eligible to elect to pay payment-in-kind (PIK) interest on its senior secured takeback loan, which will also increase pressure on its cash flow generation. The company's performance is highly sensitive to travel conditions, and leisure travel could face pressure in a more challenging macroeconomic environment. Despite the risk of a recession in the coming months, we expect Anuvu's revenue will continue to recover in 2023 as flight and cruise activity increases,...

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