$200m (30m) sen unsec cb coming tonight from GS Terms: 01/19 5.875% up 15% (at par) 97.25-07.75 reoffer. Full pctns, UOP = gc/inv profile. Deal 5 in its financial engineering program. 6.25% 107 x/par +12%, 5.5% 102.5 & x/par +19%, 5.375% 102.5 x/par 9.5%, 5.75% 100.75 x/par +14% (came 8/12 @97.75 & struggled initially). We […]
Announcing $50mm of 3yr senior convertible notes. A 10% allocation is earmarked to go to management of the company. Px talk is 7s up 15 at the mids. Very limited borrow on the stock and and company pays a div yield of 6.17%. Looking at the Mortgage REIT convert landscape, we would comp ACRE tighter […]
$1.2bn (+180m) sen unsec cb coming tonight form GS/MS. Terms: 7y 2⅝ up 30%, full pctns. UOP=capex/gcp. RE-OFFERED 99-99½.indpnt deep water driller in Gulf of Mexico/Africa. Stk +19% on 12/05 announcing a big find in gulf (+78% ytd!). Want to concentrate on stk slippage so we’ll use L+600 & 35vol (leaps illiquid but 46iv bid, […]
$150m (+22.5m) sen unsec cb coming thur night from RBC/RBS, terms : 5yr 1.25-1.75% up 27.5-32.5% full pctns. UOP = gcp/hedge. Biz is growing and co. recently raised rev + eps guidance. PF Cash = $253m, PF Debt = $150m, Lev = 5.7x, LTM FCF = $32m Co has solid liquidity from cash & +FCF. […]
$350m (52.5m) sen unsec cb coming Tues night from JPM/GS Terms: 5y, 1.75-2.25% up 22.5-27.5%, partial happy meal. Full pctns. UOP = note hedge/buyback up to 50m 2.875% CB/acq/gcp. PF Cash = $550m PF Debt = $415m LTM EBITDA = $47m Although lev high (8.8x), ebitda expected to double over next two years, bringing […]
$350m (52.5m) sen unsec cb coming Tues night from JPM/GS Terms: 5y, 1.75-2.25% up 22.5-27.5%, partial happy meal. Full pctns. UOP = note hedge/buyback up to 50m 2.875% CB/acq/gcp. PF Cash = $550m PF Debt = $415m LTM EBITDA = $47m Although lev high (8.8x), ebitda expected to double over next two years, bringing […]
$150m (22.5m) sen unsec cb coming tonight from BNP/UBS/JPM/RBS. Terms: 14.5 yr, 7.5-8% up 156%, IP=90, put/call 8, full pctns. UOP = repay debt/gcp. 1:1 tender: issue of new cb (co has tripped loan covenant, has to reduce $150m 8.125% str8 & $200m 4.625% cb). Tender/new issue not contingent for holders (ie independent books) […]
$100m (+15m) sen unsec cb coming tonight from MS. Terms: 5yr, 2-25 up 25-30%, full pctns. HAPPY MEAL UOP = $25m buyback/cb hedge/repay debt. Yet another stk+dividend CB play best suited to equity holders. $660 mkt cap portfolio manager of defaulted consumer loan & property liens. Acq TX based Propel for $186m cash in 05/12 […]
We are looking to re-initiate a position in CSG Systems (CSGS) 3% convertible bonds offered at 104.5 vs. $17.84. The issue is $150m with 4.6 years to maturity. Using a 400 credit spread, I get implied vol. of 27 and delta of 49. The stock has historically realized about 30 vol. over the past few […]
$125m (+18.75m) sen unsec cb coming tomorrow night from JPM/CS. Terms: 7 yr, 5.25-5.75 up 27.5-32.5, full pctns. Concurrent 25, stock & $350m 6 yr sen sec str8. UOP = repay asset backed debt/gcp. 7.625% 20 OAS about 920, 5yr CDS indicated 1030. We’ll assume B, L+1000. ADV = 1.2m Leaps illiguid, 2 yr 90d […]