$200m ($30m) sen unsec cb coming tonight from JPM/BAC. Terms: 6yr, 5.625-6.125% up 15-20%, full pctns. UOP=reduce sec/debt & port/inv. Existing deal came 01/11 5.75% up 17% (came at 98.5) w/stock 14c lower ($11.7). Key 4 these deals is size (big=greater fool will come, small=not obv index inclusion) $575m ARCC came 5.75% up 17.5% now […]
$150m (+22.5m) sen unsec cb overnight from JPM/MS/WFC. Terms: 5yr 4.875-5.375% up 10-15%, full pctn (div>0.166). UOP = paydown debt/gcp $800m inv co incorporated in 2008. Credit assumptions btw L+450 to L+500. However, they renegotiated 2013 term loan in 09/10 @ L+350. ARCC bigger co, BBB rated adn bonds back out L+400 using 22v. We […]
$125m (+18.75m) reg sub cb pricing tonight from DB/GS. Terms: 5yr bullet, 3.25%-3.75% up 20-25%. Concurrent 18m common offer, A123 Systems makes advanced batteries & energy storage systems for cars & electronic grid serv. Company went public in 2009. Stock hit a high shortly after ($25.77) & languished since (down 20% since deal announced). Spending […]
$200m (+15m) sen unsec cb coming tonight from MER: Terms: 7yr, 3.5-4% up 30-35%, full protections. UOP = buyback unsec debt. If you like recovery plays, then you’ll like this: Mfg biz suffered in recession but now seeing upturn. Liq is issue (50% debt secured, credit facilities due this yr, little cash on b/s fcf […]
$150m (+22.5m) sen unsec cb coming tonight from BARC. Terms: 5y, 2.5-3% up 27.5-32.5%, full pctns UOP = call spread / gcp co is small but its intentions are clear (press release mentions future acq & 10K states its search for a partner w/complimentary tech). Rev = royalties from patent license agreements (portfolio of 1300 […]
Daiwa New Issue Color $220m ($33m) 144a sub cb pricing tonight from MEW/C/CTDL. Terms: 20 yr, 4-4.5% up 37.5-42.5% nc5y, puts 7/10/15, coco 120%. UOP = $25m stk buyback, 6.25% cb buyback & gcp. A leading provider of electronic design automation software EDA. $1.68mkt cap. Stk double past yr. Feb guidance good w/bookings mo in […]
$200mn (+30mn) sen unsec cb coming tonight from JPM/BOA/WFC/DB. Terms: 5y, 4.875-5.375% up 15-20%, div ptcn > 35c. UOP= GCP and repay debt. As we know, invests in debt/equity of middle mkt cos (pfolio: 40% 1st lien, 36% sub, balance eqty & other). We’ll use L+500 and 20%iv (high div stk=low vol), Theo 97.74/99.34/100.98. Existing […]
Daiwa $125m (+18.75m) sen unsec cb coming wed from DB/UBS Terms: 7yr 3.25-3.75% up 25-30%, full pctns. Concurrent eq & str8 deals. UOP=Fund part of IRP acq and GCP. JRCC focuses on steam and industrial grade coal & one of largest suppliers of US coal to India. Thru acq enter matallurgical coal mkt. Lev increase, […]
$100m (+14m) sen unsec cb coming tonight from ML. Terms: 20 yr, 5.75-6.25% up 17.5-22.5%, call 5y, puts 5,10,15y. Full pctns. UOP = repay debt/gcp. REIT that does not conjur pleasent memories. Hit hard in 2008, it has attempted to reduce debt (incl 6.875% w/$136m outstanding. Most recent trans 1/11 @88). Credit color will touch […]
$800m (+120m) sen unsec cb coming tonight from MS/GS. Terms: 5yr 0.25% up 30%, full pctns. re-offer 98.5-100, happy meal (60d). UOP=stk buyback & fund 0.625% conversion. Well, where does one even start? We all want the same thing, issuance but not like this. Going to keep this brief; MCP, ORI, WBMD new, CX all […]