$200m [+30m] sr cb from JPM/GS pricing tonight. Terms: 5yr 2.25-2.75% up 22.5-27.5, nc-life, protections. Partial Happy Meal, UOP = gcp, potential M&A, call spread. NuVasive is a medical device so focusing on spine products [$1.3B mkt cap]. It’s an interesting growth story but not a great credit. EBITDA has turned positively. This will be […]
NIHD Analysis 8/22/07 NIHD 2.75% converts with a put in 2010 are attractive. 157.375 vs. $71.75 conversion price $50. 14.11pts/9.85% premium. Using credit of L+150, get bond floor of 90. Crosses par 2.75% up 25%…iv 38.7. We have definitely seen a volatility spike in this name. Currently, 1/09 50 calls 44.21-48.8 vol and 1/09 50 […]
325m (+50m) senior cb coming tonight from GS/DB. Terms: 7yr bullet, 1/2-1% up 22 1/2-27 1/2%. dvd/t/o prot. Prcds to buy back $200m stk. Happy Meal. The mkt historically likes human genome cb issues & guys will focus on the patent infringement case, pending March 5th decision as a short term vol catalyst. Co turned […]
$300m [+45m] senior cb on HCN from UBS & DB pricing tonight Terms: 20yr, 4 3/8- 7/8% up 20-25%, nc5y, puts 5/10/15, dvd & t/o prot. Proceeds to buy additional properties & repay credit fac. HCN has 477 facilities in 38 states. 5yr CDS @ 55bps. Weekly vol is 17%. Listeds are scant. ADV stinks […]
$85m [$15m] senior unsec cb on GBX pricing tonight from BS/Boa. Terms 20yr, 2 1/8-5/8% up 27.5-32.5%, nc7, puts 7,10,15 t/o dvd prot. This deal was a real eye opener this am. GBX is a $625M mkt cap that burns cash. We were surprised to see that their pari-passu 8.75% trades at L+195. Pro-forma leverage […]
EYE Analysis April 13, 2006 Recent events On April 10, 2006, BOL announced that it was voluntarily suspending shipments of its Renu lens care solution pending an investigation. EYE could benefit from picking up most of the $45m of Renu sales plus sales of other BOL eye care products that the consumer may switch away […]
PDLI Business PDLI has two revenue streams 1) Royalties (55%) and 2) Products (45%) but the stock trades more with Royalties because this revenue stream is much more valuable. The company collects Royalties on 7 drugs that are on the market. These drugs use a PDLI patent technology called Humanized Antibodies. Company Drug Indication Drug […]
Original research I would use L+400 as the credit spread for the new MENT $175M 6% up 65 convert issue with 7 year put. Proceeds will be used to retire the existing $171M 6.875% convert. After the offer, MENT will have $95M in cash and $$285M in debt ($175m new converts and $110m floating converts […]
HLTH analysis – 1/11/06 Summary I would use 350 over Libor as the spread for the $350M HLTH 1.75% convert bonds that have a 6/15/10 put. These are subordinate to the company’s $300M 3.125% convert bonds that have a 9/1/2012 put (I would use 275 for these). I am comfortable with the credit for the […]
$750 (+15% shoe) deal from LEH/JPM/CIBC pricing tonight con-current w. $750 common +$750M sr sub notes. 3.125%-3.625% up 32.5-37.5%. 30 yrs, NC 10, put in yr 10 only, 130% coco 120%copa. Div prot above $0.0225/qtr. Convert is structually SUB to new sr sub notes which have OCR Holdco guarantee. OCR is the largest provider of […]