Added to YB: 2026-08-27
Pitch date: 2026-08-24
HHS [bullish]
Harte Hanks, Inc.
+6.5%
current return
Author Info
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Company Info
Harte Hanks, Inc. operates as a customer experience company in the United States and internationally.
Market Cap
$29.6M
Pitch Price
$4.00
Price Target
5.00 (+22%)
Dividend
N/A
EV/EBITDA
8.23
P/E
-5.15
EV/Sales
0.31
Sector
Media
Category
special_situation
The Junk (Mail) Merger Arb - Harte Hanks, Inc.
HHS: Merger arb: STRR buying HHS at $5.00/shr (~$38.4M, 7.68M FD shares), half cash/half STRRP 10% cumulative perpetual preferred. HHS at $3.60; ~37% spread. Real-world terms: $2.50 cash + 0.25 STRRP/shr (cash capped $19.2M, prorated). Deal structured w/ preferred (no common issued) to protect Star's $215M NOLs from ownership-change limits. Signed, unanimous boards, D&O support agreements; no HSR, no Star vote. Author: high close probability. Asymmetry unfavorable: ~$1.35 upside vs $1.60 loss to $2 break. Key risk: financing condition — up to $15M drawn on HHS's Texas Capital facility or alt financing; lender consent the main hurdle. Also HHS shareholder vote, S-4 unfiled. Author: basket position, not bet-the-farm.
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