$150m (22.5m) sen unsec cb coming tonight from GS/MER. Terms: 10y 4.75-5.25% up 10-15%, s/c 7y @1120% (cpn/make whole), full pctns. UOP = acq. Quasi reverse enquiry w/xover but we’ll still run exercise. Commercial RE inv REIT w/small subsidiary specializing in single family rental market. $143m undrawn sec/bank loan amended in Sept @ L+375, expires […]
$825m sen unsec exch coming tonight from BNP/MER. Terms: 30 yr, 0.5-0.75% up 10%, s/c 5-10 yr @120%, put & h/call 10 yr, full dvd p/thru. UOP = retire some 3.125% 21. Theory vs. reality: exchangeable w/zero ring fense so don’t use standard model (tail risk = credit in bankruptcy w/parity @ 120) –ve basis […]
$250m (37.5m) sen cb coming tonight from JPM/NARC/GS/MS. Terms: 6yr, 2.5-3 up 27.5-32.5, nc-4, prov call @130% after, full pctns. UOP = repay debt/gcp. Concurrent $250m 8y str8 del. Co’s recovery very gradual. Exposed to fluctuation in US & Euro markets. Imports from china have increased, putting pressure on other markets. However, liquidity NOT an […]
On the mids, we think customers should consider buying the new SFI preferred deal. With no common dividend, the yearly cash flow is quite substantial and more than compensates for the premium. The positive cash flow also allows for heavy delta which handles the credit risk. We think there may be room for this security […]
$1b (+150m) sen unsec cb coming Tue night from MS/BOAML. Terms: 5yr, 0-0.25% up 47-52%, full pctns. UOP note hedge/acq/gcp. CB shud appeal to o/r’s with HF struggling with mode & optics. PF Cash = 2.73B, PF debt = $1.575B LTM FCF = $557m, LTM EBITDA = $261m 6x leverage. Olds came 0.75 up 25 […]
:**** DAIWA NEW ISSUE COLOR: ICON ********************* $350m (+50m) sen sub cb coming tonite from BARC.Terms:5y,1¼-1¾up 27½-32½%, full pctns. UOP=$75m stk buyback/hedge/acq/gcp.Co owns/manages 20 brands, most recently acquiring Umbro from Nike in 12/12 for $225m. Solid credit; low capex, high margin, strong c/flow & good liq (600m t/loan in 12/12, undrawn 100m revolver & 150m […]
$150m (22.5m) sen unsec cb coming tonight from MER. Terms: 6yr, 4-4.5% up 35-40%, H/C 4 yrs, no puts, full pctns. UOP = acq/gcp ¾ of FY12 rev came from google (search engine advertising) so co wants to diversify going forward (bought Tax Act in 2012). LTM EBITDA = 67m FCF 45m PF Cash = […]
$250m (+37.5m) sen unsec cb coming tonight from CS. Terms: 5yr, 5-5.5% up 10-15%, full pctns. UOP = acq assets/maintain REIT status. Portfolio = 20/80 commercial/residential (res 50:50 agency: non agency) Housing recovery has increased IVRs demand 4 riskier non agency. PF Debt = skewed by s/term repurchase agreements (cb only 1/term debt), cash = […]
**************** DAIWA NEW COLOR: RWT ************************** $150m (+22.5m) sen unsec cb coming tonight from JPM/BARC. Terms: 5y, 4⅞-5⅜% up 12½-17½%, full pctns. UOP=acq of res/mortgage loans/gcp. Co has track record from mid 1990’s, specialising in jumbo res/mortgages w/a smaller commercial u/writing biz. Wants to aggressively grow p/folio given real estate env. PFdebt=841m, cash=227m, LTM ebitda=213m, […]
$200m (+30m) sen unsec cb coming weds from MS/GS. Terms: 6yr, 3-3.5% up 25-30%, 4yr s/c @130%, pctns. Concurrent 30m (+4.5m) stock offering UOP=gcp. Stk up 4x since 05/12 low, 5yr CDS 2300 bp tighter (150bp on last night’s announcement) & existing 3% cb up 1.5 pts (2.9% up 54% x/par +65%, using L+500/75bp brw […]