Author Archives: convertarb

06-11-14 TCP Capital (TCPC)

$100m (+15m) sen unsec cb coming tomorrow from BOA . Terms: 5.5y 4¾-5¼% up 12½-17½%, full pctns. UOP=pay down revolver/gcp. $640m BDC specialising in middle-mkt cos. $816m pfolio w/70 cos (well diversified w/biggest % in computer services @ 10%). Inv size=$10-40m & 95% of pfolio is sen sec. Stk +12% since 05/07/14 Recent comp to […]

06-10-14 Trina Solar (TSL)

$150m (+22.5m) sen unsec cb coming tonight from DB/JPM/GS/BARC. Terms: 3¼-¾% up 27½-32½%, 3y put,full pctns.Cncrrnt 8.8m stk plcmnt. UOP=cb hedge/gcp/working cap. $850m Chinese solar mnfctr founded in ’97 w/stk+1.4x in LTM. Similar sized peer=JKS which issued a 150m 5y CB  in 01/14 (4 up 30%) & now back out L+1100 (35%).TSL PFcash=718mdebt=1.33bn,LTMebitda=142m (FY14/15 exp=246 […]

06-05-14 Sun Edision (SUNE)

$500m (+100m) sen unsec cb coming tonight from DB/GS/WFC/BARC. Terms: 5.6y (01/15/20), ½-1% up 25-30%, full pctns.UOP=cb hedge $350-400m 4 acq/dvlpmnt. $5.2bn renewable energy co w/stk +75% since A/B issuance in 12/13. Existing 4.3y A=L+470 (148⅝ vs 19/ 40vol), 6.6y B=L+615 (151⅞ vs 19/40vol). PFcash=1.09bn, debt= 1.45bn, LTMebitda=(55m) FY14/15 exp 289/481m respectively. We’d assume L+525 […]

06-05-14 Illumina (ILMN)

$900m (+135m) 2 tranche sen unsec cb deal coming tomorrow night from GS/BAML. Terms: <A> 5y, 0-½ up 50-55% <B> 7y, ½-1% up 50- 55%, full pctns. UOP=repayment of existing .25% cb/gcp. $20.5bn mnfctr of genetic sequencing eqpmnt, founded ’98. Stk -12% from 02/14 high but still +1.4x in LTM.Existing .25% CB ~195⅞ vs cls […]

06-05-14 Sunpower (SPWR)

$400m ($250m placed w/FP) sen unsec cb coming tonight from DB. Terms: 7y, 1½-2% up 40-45%, full pctns (Euro t/o ratchet) UOP= repay existing debt/capex. $4.5bn Solar mnfctr/service provider incorporated in ’85 w/stk +1.1x in LTM. 2 existing deals; 250m 4½% ’15 (157⅜ vs cls w/5.4pts premo) & ~45iv but  s/dated (.14 vega) so not […]

06-04-14 Insulet (PODD)

$500m (+100m) sen unsec cb coming tonight from DB/GS/WFC/BARC. Terms: 5.6y (01/15/20), ½-1% up 25-30%, full pctns.UOP=cb hedge $350-400m 4 acq/dvlpmnt. $5.2bn renewable energy co w/stk +75% since A/B issuance in 12/13. Existing 4.3y A=L+470 (148⅝ vs 19/ 40vol), 6.6y B=L+615 (151⅞ vs 19/40vol). PFcash=1.09bn, debt= 1.45bn, LTMebitda=(55m) FY14/15 exp 289/481m respectively. We’d assume L+525 […]

05-30-14 Renewable Energy Group (REGI)

******** $125m (+18.75m) sen unsec cb coming tonight from BAML/WFC.Terms: 5y, 2¾-3¼% up 27½-32½%, full pctns. UOP=cb hedge/repay Gulf Opp/Zone bond guarantees.$400m leading NA Biodiesel manufacturer /service provider founded ’96 (w/257m gallons of owned/operated annual prdctn within NA). PFcash=136m,debt=160m,LTMebitda=128m, fcf=80m (ex acq),lev=1.3x. Small mkt cap BUT low lev/solid crdt. We’d assume L+650 for 5y. ADV=600k, […]

05-29-14 Spectranetics Corp (SPNC)

$200m (+30m) sen unsec cb coming tonite from Piper Jaffray.Terms 20y, 2¾-3¼% up 32½-37½%, s/c 4y @ 130% (t/o matrix), puts 7, 10,15y, full pctns. UOP=fund AngioScore Inc/gcp. $1bn c/vascular medical device maker. PF/LTM no’s less relevant BUT 4 ref; Cash= 80.7m, debt=200m (CB only debt), EBITDA=10m (12/31/13), lev=12x. Acq exp2 be accretive (8-10m synergies […]

05-28-14 New Mountain Finance (NMFC)

************** $100m (+15m) sen unsec cb coming tonight from GS. Terms: 5y,4½- 5% up 10-15%, full pctns.UOP=repay debt/gcp.$750m BDC formed ’10 w/pflio concentration=software/education & biz service sectors. >> Larger IG comps=$3.4bn PSEC (4.6y 5⅞%=L+344 w/15%),$5.1bn ARCC (4.6y 4⅜%=L+171 w/15%). Smaller $650m BBB- BKCC w/its 3.7y 5½% cb backs out L+276 (15%). NMFC has 3 revolvers […]

05-19-14 Live Nation Entertainment (LYV)

$250m (+25m) se unsec cb coming tonight from GS/TERMS. Terms: 5y 2½-3%  up 47½-52½%, full pctns. Cncrnt 8y $250m sen sec str8 (5½-5¾% px talk). LMCA to acq 3.7m shares (Happy Meal).UOP=acq /redeem existing 2⅞% cb/gcp. $4.4bn live ent/co w/185 domestic venues & 113 internationally. Stk +66% LTM. Assuming 2⅞% rdmptn PFcash=1.909bn, debt=2087bn, LTMebitda=562m, fcf=378m, […]