...- Blood glucose monitoring (BGM) devices manufacturer LifeScan Global Corp. continues to face headwinds in its core business, and we expect its revenue to continue declining at a mid- to high-single-digit rate. Additionally, we expect free cash flow to remain below $100 million in 2023, a level we deem unsustainable for the company's capital structure given its $103 million annual debt amortization. - In addition, the company's constant glucose monitoring (CGM) product is still pending regulatory approval, and its launch timeline is uncertain, which we believe could be detrimental to the company's prospects to gain market share from already existing CGM products following the delayed launch of its product. In the meantime, the investment in CGM development constrains LifeScan's margins and cash generation. - Also, an elevated benchmark interest rate environment and heightened credit risk premiums elevate debt refinancing risk for the company, whose revolver and first-lien term loan mature...
