$500m (+100m) 2nd lien sen cb coming 2nite from JPM. Terms: 30yr 8-8.5% up 17.5-22.5%, nc7y, puts 7, 15, 20, 25. Cncrnt combined $675m sec/str8 deal. UOP=gcp. 54% owner Sprint has 30d option on $585m add’l cb. Cap/raise will fill s/t funding gap & take pop/coverage to 120m from 103m. Add’l funding needed further build […]
$100m (+25m) sen unsec cb coming tonight from BOA. Terms: 6 yr, 5.75-6.25% up 25-30%, sc 4 yr@130%, pctns. 30d term swap. UOP = 3.5% b/back, hedge. $450m niche playa w/recurring rev streams in mkt with high barriers to entry 4 overseas co’s/ Mgt felt turnaround was not being reflected in $200m str8 pricing so […]
$125m (25m) 144a senior unsec cb pricing tonight from DB. Terms: 5yr bullet, 3-3.5% up 25-30%, protections, UOP=gcp & potential acq. They provide converged test systems & services or wireless infrastructures. $1B market. So tiny company but doing well: strong sales growth due to 3G upgrades and 4G deployment. This will be their only debt. […]
$350m ($52.5m) sen unsec cb coming tonight from JPM/Citi. Terms: 10yr, 2.5-3% up 37.5-42.5% put/call 5yr, full pctn. UOP=repay debt/gcp. Existing 2% ’20 (12/13 put call) came 2% up 37.5% now x/par up 45% (static 37d). 3.5y DHI ~31 iv (300 bps CDS) w/leaps 40 iv bid. LEN 3yr CDS ~355=25iv & 3/4.7 pts cheap […]
$250m (25m) sen unsec cb coming tonight from JPM. Terms: 30 yr 2.125%-2.625% up 10-15%, s-call yr11 @150%, full pctns. HAPPY. UOP = repay term/loan & stk buy back. Similar structures in mkt = MCHP, VRSN, XLNX. MCHP came 2.125% up 15% (full div pass thru) now x/par up 7%, VRSN came 3.25% up 20% […]
MTG deferred coupon trade – August 2010 Trade Summary September 2010: Long MTG 9% convertible bonds and long October 6 strike put options. MTG began deferring coupons on the MTG 9% convertible bonds beginning with the April 1, 2009 coupon. According to the indenture, MTG had the right to defer the coupons for up to […]
LDK converts analysis – 35% YTP less than a year to maturity June 1, 2010 LDK has $400m of 4.75% convertible bonds with a put on 4/15/11 trading at 79 for a ytp of about 35%. I think this is an attractive yield. The company’s main problem is that it has too much short term […]
March 24, 2010 Near term catalyst On 3/19/10, GY amended their credit agreement to allow the company to refinance their outstanding unsecured bonds. The agreement allows GY to issue up to $438m in debt but the company has to use the proceeds to retire either the term loan or the unsecured bonds. In exchange, GY […]
Distressed Debt Investing Trade Claims Primer Introduction While bank lenders and bondholders generally represent the largest portion of debtor’s pre- petition claims, upon filing there is a large constituency of other creditors who also possess claims against the debtor at various levels of priority within the capital structure. Because the sale, assignment and transfer of […]
May 17, 2010 In May 2010, SY agreed to be acquired by SAP for $65 cash. The deal was expected to be completed by mid July 2010. The next coupon is 8/15/10. However, the indenture says you can hold the convert for between 20 to 30 days after the closing date before converting. In that […]