Form 4: Fund 1 Investments, LLC Increases Economic Exposure to Tile Shop Holdings Through Stock Purchases and Cash-Settled Swaps

Fund 1 Investments, LLC, along with related entities, reports increased economic exposure to Tile Shop Holdings through common stock purchases and cash-settled total return swaps.

Summary

• On April 25, 2025, Fund 1 Investments, LLC acquired 1,000 shares of Tile Shop Holdings, Inc. common stock at $5.785 per share.
• An additional 3,924 shares were purchased at $5.7485 per share on the same day.
• Following these transactions, Fund 1 Investments, LLC indirectly beneficially owns 11,786,750 shares.
• The reporting persons also entered into cash-settled total return swap arrangements, providing economic exposure to 27,430 notional shares at $5.7178 per share.
• Another swap agreement provides exposure to 20,000 notional shares at $5.731 per share.
• These swaps do not grant voting or disposition rights over the underlying shares.
• The swap agreements' expiration dates are automatically extended for 12-month periods unless notice is given.
• The reported securities are held for the benefit of PLP Funds Master Fund LP and another private investment vehicle.
• Fund 1 Investments, LLC serves as the managing member of Pleasant Lake Partners LLC, which is the investment advisor for PLP Funds Master Fund LP.

Sentiment

Score: 6

Explanation: Neutral sentiment. The document primarily reports transactions without expressing explicit positive or negative views on the company's prospects. The increased economic exposure could be interpreted as mildly positive, but the use of swaps limits direct influence.

Positives

• Increased investment in Tile Shop Holdings by Fund 1 Investments, LLC may signal confidence in the company's future prospects.

Risks

• The use of cash-settled swaps, while providing economic exposure, does not grant voting rights, potentially limiting influence over company decisions.
• The automatic extension of swap agreement expiration dates could lead to prolonged exposure, regardless of performance.

Future Outlook

The document does not contain explicit forward-looking statements, but the continued economic exposure through swaps suggests a sustained interest in Tile Shop Holdings' performance.

Industry Context

The filing reflects investment activity in the home improvement retail sector, where Tile Shop Holdings operates. Monitoring similar filings from major shareholders can provide insights into market sentiment and potential strategic shifts.

Stakeholder Impact

• The increased economic exposure could positively influence shareholder confidence.
• The transactions do not appear to directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

Tile Shop Holdings, Fund 1 Investments, cash-settled total return swap, beneficial ownership, stock purchase, TTSH, economic exposure