9/12/12 Sequenom (SQNM) Announcing a $100mm 5yr senior convert notes. Px talk is 4-3/4-5-1/4% up 25-30%, NC3, 140% softcall. Assuming 3.5% borrow cost on the stock, deal looks 1.5-2.5pts rich given lack of operating visibility on SQNM and limited liquidity runway this deal will give them. Using L+1000, implies TV of 97-1/2 to 3/4 and […]
9/12/12 Jarden (JAH) $450m (50m) sen sub cb coming tonight from BARC/JPM. Terms: 6y, 1.875 up 27.5-32.5. UOP=gcp and share buyback. Happy meal. CEO has SPAC history so savvy (1.875 on 6y sen sub w/credit tight/stk high & levering co to buyback stk all proof). Pari 7.5% 20 OAS = L+310 & 7.5% 17 z-spread […]
9/12/12 Meritage Homes (MTH) $100m (15m) sen cb coming tonight from CITI/JPM/DB/BOA. Terms 20 yr 1.375-1.875% up 47.5-52.5%, 5 yr put call. UOP = gcp. Homebuilders in 2012 = REITs in 2007 (the more allocated the more resistance & the more we hear –ve basis. 5yr CDS 300 but illiquid. Both pari 7.731% 2017 and […]
Toll (TOL) $250m (37.5m) sen unsec cb coming tonight from DB/Citi. Terms: 20 yr, 0.25-0.75% up 47.5-52.5%, 5.25/5yr put/call, full pctn. UOOP = gcp. Stk +148% since 10/11 low but still 44% off heady housing market of 2005. CDOs may need to make comeback w/lax lending standards before u see this ITM. LEN/DHI cheaper vs […]
8/22/12 Wright Medical (WMGI) $200m (+30m) sen unsec cb coming tonight from JPM. Terms: 5yr 2.25-2.75% up 22.5-27.5, full pctns. UOP = hedge/buyback debt (incl $29 2014 cb). Small $830m orthopedic device maker w/PF debt = 201m (cb), cash=227m, LTM ebitda=54m, fcf = 31m, lev =3.7x. We’ll assume B & L+550. Small adv (335k), no […]
Molycorp (MCP) $300m (+45m) sen unsec cb coming tonight from MS/CS. Terms: 5yr, 5-5-6% up 20-25%, s/c yr 3 @130% full pctns. UOP = w/capex repay Neo/Mat 5% 2017. Concurrent $172.5m stk placement and $138m brw facility. Will need O/R otherwise brw won’t be enough (placing w/help free up rate but not to GC). Capital […]
Prospect Capital (PSEC) 8/8/12 $200m (+30m) 144a sen unsec cb overnight from BAR. Terms: 5.5 yr bullet, 5.75% up 10%, re-offer at 99. All prtns, UOP=maintain liquidity, investments. PSEC is a small biz development co (BDC) that invests in mid-market privately held co’s. There are three CB’s in existence, IG rates. Co. just did stk […]
Hornbeck Offshore (HOS) 8/7/12 $260m (+40m) 144a convertible sr note from BAR pricing Tues night after close. 7 yr bullet 1.5-2% up 32.5-37.5, all ptcns, UOP, pay for note hedge, retire 1.625% converts and GCP. HOS is a leading provider of marine transport to the offshore oil and gas industry, mainly in the GOM with […]
ISIS (ISIS) $175m ($26.25m) 144a unsec sr cb pricing TUE nite from GS, JPM, BARCAP. Terms: 7 yr, 3-3.75% up 27.5-32.5%, nc-4, 130% after, prot. UOP= GCP and repurchase of existing 2.625% converts. ISIS focuses on developing antisense drugs for cardiovascular, inflammatory and metabolic diseases. Co has handful of its pipeline licensed or partnered w/larger […]
Exelixis (EXEL) 8/7/12 $225m (+33.75m) REG unsec sen sub cb pricing wed nite from GS. Terms: 7yr, 3.75-4.25% up 25-30%, nc-4, 130% after, prot. UOP = GCP. Concurrent offering of 20m shares. Biotech co focused on developing small-molecule therapies for cancer treatment. Key drug = CABO. FDA approval likely for thyroid cancer version in Nov, […]