Author Archives: convertarb

MU new issue 7/20/11

$600m (+90m) sen unsec cb coming tonight from MS. Terms A:300m, 20 yr, 1.5-2% up 20-25%, s/c btw 3-5 yr@130% (cpn m/whole to 5yr), H?C > 5y, put 7y. B:300m, 20 yr, 1.875%-2.375% up 20-25%, s/c btw 4-6y@130% (cpn m/whole to 6 yr), H?C > 6 yr, put 9y. pctns. UOOP=gcp/stk buy back/hedge. B4 news, […]

Forest City (FCE/A) new issue analysis 07/15/11

Daiwa color $250m ($46.9m) sen sec cb coming tonight from GS/BARC. Terms: 7yr 3.75%-4.25% up 20-25%, call 4life @130% w/NO cpn make whole (*** A coupon make-whole was added to the deal at the end ***) UOP = repay sec debt. $3B RE co which operated in high barrier to entry mkt in 27 states. […]

Electronic Arts new issue color 07/15/11

Daiwa New issue Color $550m (+82.5m) 144a sen cb pricing tonight from MS/JPM/UBS. Terms: 5 yr bullet, 1-1.5% up 30-35% prots, UOP = PopCap acq, warrant trans & gcp. EA is a leading video gamer (think Madden NFL). They just announced acq of PopCap (plants vs zombies) for $650m cash +100m stk +w/up to $550 […]

Novellus (NVLS) new issue 07/11/11

Daiwa new issue color (5/4/11) $525m (+75m) 144a sen cb pricing tonight from JPM/BOA. Terms: 30yr, 2.5-3% up 15-20%, soft call yr 10@150% Happy meal: up to $400m used to buy back stock. Last week NVLS gave disappointing guidance & stk got hit. They’ve now upsized previous shs buyback by $600m. This is a breakeven […]

CETV 3.5% converts analysis 11/2010

November 2010 I like the CETV 3.5% converts due 3/15/13 trading at about 89 for a 9% yield to maturity. There is s a good chance that the company will try to pre-fund the maturity of this convert so the overhang on the stock is lifted. I spoke to Romana Wyllie, VP corp communications, about […]

Fraudulent conveyance in TOUSA case

Distressed Debt Investing Website 06/29/11 This week we are going to be discussing fraudulent conveyance. Section 548 of the bankruptcy code deals with transactions that are fraudulently made. While malicious transfers are also dealt with in the bankruptcy code (i.e. doing something purposefully to malign creditors), we are going to be focusing on the more […]

Insulet Corp (PODD) new issue 06/28/11

$110m (16m) sen sc coming tonight from JPM. Terms: 5yr, 3.5-4% up 30-35%, s/c 4 yr @130% & hc 5 yr, full pctn, cncrrnt 1.15m stock sale (wont receive proceeds). UOP = gcp/buyback 5.375% ’13 old cb issued 2008 (5.375 up 34% w/strike @15.93). Illiquid & fair/straightly rich (120.5 vs 20.49 = L+410 for 2 […]

NuVasive (NUVA) new issue 06/22/11

$325m (48.75m) reg senior cb pricing tonight from BAS/GS Terms: 6 yr bullet. 2.5-3% up 27.5-32.5%, protect. UOP =gcp & repurchase olds 2.25% ($230m). NUVA is a medical device company focused on spinal surgery mkt. Mkt cap = $1.3B. Their competition is from much larger MDT/SYK. B/S is decent: PF Cash = $311m, PF Debt […]

Integra LifeSciences (IART) new issue 6/17/11

$200m (+15m) sen unsec cb coming tonight from JPM. Term: 5.5y, 1.25-1.75% up 22.5-27.5%, full pctn. UOP hedge, $40m stk buyback, Mkt leader in surgical instruments, last in out mkt in ’07 (5 yr came 2.375% +25% with stk amazingly at this lvl). Co spent $89m cash but will double spinal mkt rev w/Seaspine acq. […]

Broadsoft (BSFT) new issue 06/17/11

$100m (+20m) 144a sen cb from GS/JEF pricing tonight. Terms: 7 yr, 1.25-1.75% up 17.5-22.5%, 5yr s/c @140% (w/coupon make whole) prots. UOP = gcp. One product biz which ipod in 06/09. Co is mkt leader but niche is exp to grow fast = competition from the likes of ALU etc. Liq good w/cb & […]