$200m (+30m) sen unsec cb coming tonight from JPM/Citi/Bac. Terms: 5yr, 1.125-1.625% up 20-25%, pctns. UOP = $50m stk buyback/hedge. Happy meal. $1.2B acute/intensive care pharma. Pfolio = lead drug angiomax (used in 2500 hospitals globally, FY12 net rev expected 2 be 9-11% over FY 11), Cleviprex, Argatroben (US only) then 4 in phase 1-3. […]
Salesforce.com (CRM) 0.75% converts due 01/15/15 trade at 164.25 vs. 131.5, which using 150 credit spread implies volatility of 43. Options implied vol 2014 is much higher at about 50. The converts have a theo delta of 87. We can put this trade on a slightly higher delta of 90 to better capture the downside […]
Ryland (RYL) $150m (+22.5m) sen unsec cb coming tonight from CITI/JPM. Terms: 6yr, 1.625-2.125% up 37.5-42.5%, full pctns. UOP=gcp/debt repayment. Larger LEN has 3.25% which back out L+460 to 11/16, RYL 6 yr CDS is ~320 mid but sector trades with basis (100-150 bps). Z-spread on RYL 6.625% ’20 str8 ~480bp. We’ll use L+450 for […]
Medicis (MRX) $400m (+50m) REG sen cb pricing tonight from DB/JPM. Terms: 5 yr bullet, 1.5-2%, up 20-25%, protections. UOP=gcp and warrant transaction. MRX is a specialty pharma focused on dermatological & aesthetic conditions. $2.3B mkt cap. They reported better than expected earnings this week driven by early success of alternative fulfillment programs in Acne […]
Annaly (NLY) $750m (+115m) sen unsec bought cb coming overnight by CS/MS. Terms: 3yr, 5% up 15%, dvd pctn > 55c per qtr. UOP = to buy mbs portfolio & gcp. Not sure where to begin! Existing 4% ’15 backs out L+500. We’ll use L+400 for this and 15 vol. Taking stk down to $16 […]
Titan Machinery (TITN) – 4/18/12 $115 144a senior unsec cb pricing tonight from BAML/WFC. Terms: 7 yr, 3.625-4.125% up 30-35%, nc-3y, s-call thereafter @120%, prot. UOP = working capital & gcp (incl repaying portion of floor plan finance). Titan Machinery sells & rents agricultural & construction machinery in Midwest & Europe. $675 mkt cap stk […]
4/17/12 Wabash (WNC) $150m sen unsec cb coming tonight from MS/WFC. Terms: 6yr, 3.375-3.875% up 32.5-37.5% full pctns. UOP = fund walker acq/gcp. Note: co has option to pay 101 + 75% parity move (theo delta) + accrued if deal fails. Small $621m truck/trailer manufacturer w/have $450m debt > deal w/$300m secured ahead of CB. […]
4/17/12 Tibco (TIBX) $500m (+75m) 144a sen cb pricing tonight from MS/JPM/C/BAML. Terms: 20 yr, 2.25%-2.75% up 47.5-52.5, 5yr put/call, prot. UOP = $150m stock buyback, $150m credit facility & gcp. Partial Happy Meal. TIBCA Software provides infrastructure software products to link internal operations & customer channels in real time. $5.4B mkt cap. 2.5x lev, […]
4/11/12 Micron added S/C make whole protection on both bonds. $870m (+130m) sen unsec CB coming Thurs night from MS/JPM. Terms C 20y, 1.875-2.375% up 37.5-42.5%, s/c 4 yr @130 put H/C yr (D) 20 yr, 2.625-3.125% up 42.5-47.5%, s/c 5yr @130 put & H/C 9y. full pctns. UOP = gcp/hedge. Similarly structured 2 tranche […]
DFC Global DLLR 4/9/12 $200m (+30m) unsec cb coming tonight from BARC. Terms: 5yr, 2.75-3.25% up 27.5-32.5, full pctns. UOP = hedge/repay debt/gcp. Happy meal for the minority. Structurally sen 10.375% 16 str8 OSA 570 bps 3% cb (put/call 04/15) backed out L+590 pre-news (using 32 vol). We’ll back 5 yr spread to L+750. Again, […]