Author Archives: convertarb

08-06-14 Empire State Realty Trust (ESRT)

$250m (+37.5m) sen unsec cb coming tonight from GS. Terms: 5y, 2⅛-2⅝% up 22½-27½%, full pctns. UOP=repay revolver/mortgage debt. $1.6bn office/retail REIT based in NY/CT (30 properties). Stk +25% from 10/13 IPO. Space=underperformer; SRC (retail REIT) 5/7y came 05/14 (2⅞& 3¾up 22.5% respectively). They are still ~100 w/15% premo. EXR (self storage REIT) came 06/13 […]

08-06-14 Synchronoss Technologies (SNCR)

$200m (+30m) sen unsec cb coming tomorrow from CS/JPM. Terms: 5y ¾-1¼% up 32½-37½%, full pctns. UOP=repay $40m rev/gcp.$1.7bn provider of on-demand transaction mgt solutions & cloud based   software activation services 4 connected devices. On-demand biz= top 5 custies=77% rev w/VZ & AT&T each representing >10%. PFcash =235m, debt=200m, LTMebitda=109m, fcf=15m, lev=1.8x.Revolv being paid down=L+225. […]

08-01-14 Qihoo (QIHU)

$900m (+135m) sen unsec cb coming tomorrow from CS/CITI. Terms:  <A> >$300m, 6y, ¼-¾% up 35-40%, 3y put <B> >$300m, 7y, 1½-2% up 32½-37½%, 5y put,full pctn. UOP=gcp.$12bn internet security biz w/stk +35% since 1st CB came 08/13 ($600m, 2½% up 40% w/stk @ 79.26). These are -1.5pts > announcement & now back out L+420 […]

07-09-14 Macquarie Infrastructure Company (MIC)

********** $250m (+37.5m) sen unsec cb coming Weds night from BARC/JPM/WFC. Terms: 5y, 2⅞-3⅜% up 17½-22½%, full pctns (div>.95). Cncrrnt 10m stk offering. UOP=acq remainder of IMTT. $3.5bn diversified infrastructure biz; Airport (63 US airports), Marine (10 US & 2 Canadian ports) & Nat Gas/Solar sevicing w/stk +19% from 01/14 low. PFcash=124m,debt=2.03bn,LTMebitda=448m,fcf=200m (Co states acq […]

06-24-14 Palo Alto Networks (PANW)

$500m (+75m) sen unsec cb coming tonite from JPM/CITI/RBC. Terms 5y,0-½ up 35-40%, full pctns.UOP=note hedge/acq/gcp.$6bn global network security provider founded in ’05. Stk +40% since 05/14 low (+7% on back of solid 3Q results;Rev +49% yoy, billings +46% & the highest new customer acq vs any prev qtr. It also agreed to settle w/JNPR […]

06-24-14 Scorpio Tankers (STNG)

$250m (+50m) sen unsec CB coming tonight from UBS/BAML. Terms:5y 2⅛-⅝% up 27½-32½%, S/C at 130% 3y, full pctns (ratio adj>0). UOP=$150m stk buy back/gcp. $1.7bn product tanking biz (owns 21 tankers as of 03/31/14). Co founded in ’09, IPO’d @ $13 in 03/10 & is now -26% from 11/13 high. Solid b/sheet; As of […]

06-24-14 Mercadolibre (MELI)

$300m (+30m) sen unsec cb coming tonight from GS/JPM/DB. Terms: 5y, 2¼-2¾% up 32½-37½%, full pctns. UOP=note hedge/gcp. $4bn LatAm e-commerce biz & largest online mkt/auction platform thru its MercadoLibre Marketplace. Founded in 1999. it operates in 13 Latam countries (as of 12/31).Stk -36% since 10/13 high (EBAY =17% stake) & Venezuala’s currency deval was […]

06-18-14 Restoration Hardware (RH)

300m (+50m) sen unsec cb ocming tonight from GS, BAC. Terms: 5y 0-0.5% up 30-35%, full pctns. UOP=gcp/repay debt.$3.2bn domestic home furnishing retailer. Founded in ’79, it currently operates 70 retail stores & 17 outlets within NA/Canada. Stk +53% from 02 /14 low & +42% alone last week (strong Q1). JEF rates stk a BUY […]

06-17-14 J2 Global (JCOM)

$300m (+45m) sen unsec cb coming tonight from BOA/CITI/WFC.Terms =15y, 3-3½ up 42½-47½%, H/C 7y, puts 7,10y, full pctns. UOP= acq/gcp/reapy sen debt.$2.3bn cloud based biz services & digital media provider founded in 1995.PFcash=499m, debt=550m, LTMebitda =230m, fcf=177m,gross lev=2.4x. Conundrum=We would have assumed a tighter spread BUT it’s $250m structurally sen(sub guarantees) 8% str8 ~108.75=L+394 […]

06-17-14 Acorda Therapeutics (ACOR)

$300m (+45m) sen unsec cb coming tomorrow from JPM. Terms: 7yr, 1¾-2¼% up 27½-32½%, S/C 3y @ 130%, full pcnts. UOP=gcp/acq. $1.4bn biotech founded in ’95. Develops therapies 4 MS, spinal cord injuries (SCI) & nervous system disorders. Main drug=Ampyra (approved 01/10, improves walking 4 MS patients). Rest=Zanaflex (spasticity) & Qutenza (neuropathic pain). Pipeline=1xPH3,2xPH2, 3xPH1 […]