All about converts » Uncategorized http://convertarb.net This blog will discuss all topics pertaining to convertible bonds including credit analysis, indenture analysis and convertible arbitrage trade ideas. Mon, 05 Jan 2015 00:40:30 +0000 en-US hourly 1 https://wordpress.org/?v=4.2.38 01-17-13 Solazyme (SZYM) http://convertarb.net/?p=1266 http://convertarb.net/?p=1266#comments Thu, 17 Jan 2013 00:37:45 +0000 http://convertarb.net/?p=1266 Solazyme (SZYM)

Industrial biotechnology company using algae to produce oils for fuels, chemicals, nutritionals, & skin and personal care.

PF Cash $264m

PF Debt $116m

LTM EBITDA -73m

LTM FCF -70m

Yrs Cash 3.8 yrs

Mkt cap 443m

Start-up bioproducts co with line of skin care products on market (yts rev 12m). JVs with Bunge in Brazil, Roquette in Europe & ADM in US, all have capacity planned to come inline thru 1Q14. Remains to be seen how successful these will be. Just secured #120m proj finance for Brazil plant. Has onw prod fac in Peoria. Exploring many other prods incl replacement for cocoa butter. Converts are subordinated behind bank debt.

Our assigned spread L+850

]]> http://convertarb.net/?feed=rss2&p=1266 0 Medicis (MRX) 5/10/12 http://convertarb.net/?p=1145 http://convertarb.net/?p=1145#comments Thu, 10 May 2012 21:54:21 +0000 http://convertiblearbitrage.net/blog1/?p=1145 Medicis (MRX)

$400m (+50m) REG sen cb pricing tonight from DB/JPM. Terms: 5 yr bullet, 1.5-2%, up 20-25%, protections. UOP=gcp and warrant transaction. MRX is a specialty pharma focused on dermatological & aesthetic conditions. $2.3B mkt cap. They reported better than expected earnings this week driven by early success of alternative fulfillment programs in Acne biz & volume growth in aesthetics. Strong b/s: pro-forma cash = $742m, debt = $569m (incl $169m of o/s ITM 2.5s). We’ll use L+400. Despite a vol spike in last yr, historically been low 20s. We’ll use 24 vol. Theo = 101. Solid company  known by converland. Clean structure. Balance bond. BUY

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