Prospect Capital (PSEC) 8/8/12 $200m (+30m) 144a sen unsec cb overnight from BAR. Terms: 5.5 yr bullet, 5.75% up 10%, re-offer at 99. All prtns, UOP=maintain liquidity, investments. PSEC is a small biz development co (BDC) that invests in mid-market privately held co’s. There are three CB’s in existence, IG rates. Co. just did stk […]
Hornbeck Offshore (HOS) 8/7/12 $260m (+40m) 144a convertible sr note from BAR pricing Tues night after close. 7 yr bullet 1.5-2% up 32.5-37.5, all ptcns, UOP, pay for note hedge, retire 1.625% converts and GCP. HOS is a leading provider of marine transport to the offshore oil and gas industry, mainly in the GOM with […]
ISIS (ISIS) $175m ($26.25m) 144a unsec sr cb pricing TUE nite from GS, JPM, BARCAP. Terms: 7 yr, 3-3.75% up 27.5-32.5%, nc-4, 130% after, prot. UOP= GCP and repurchase of existing 2.625% converts. ISIS focuses on developing antisense drugs for cardiovascular, inflammatory and metabolic diseases. Co has handful of its pipeline licensed or partnered w/larger […]
Exelixis (EXEL) 8/7/12 $225m (+33.75m) REG unsec sen sub cb pricing wed nite from GS. Terms: 7yr, 3.75-4.25% up 25-30%, nc-4, 130% after, prot. UOP = GCP. Concurrent offering of 20m shares. Biotech co focused on developing small-molecule therapies for cancer treatment. Key drug = CABO. FDA approval likely for thyroid cancer version in Nov, […]
Standard Pacific (SPF) $250m (+22.5m) REG unsec senior cb pricing tonight from JPM/CS/Citi/Bofa. Terms 1.125%-1.625% up 37.5-42.5$ p/c yr 5, prot. UOP = GSP. Concurrent 12.5m shares. Homebuilder operating in CA, FL, AZ, NC, SC, TX and CO. 5 yr CDS 345/365. SPF has more checkered past than RYL, DHI, LEN (stk 0.67 at the […]
BZH- Consider playing the deal and then (probably) flip it On the mids of the price talk and using a 70 and 65 vol and a 1000 over credit spread, the new BZH deals models 4.41% cheap or about 1.5% cheap a year. Theoretical delta is 6.65. As mandatories go, this is reasonable valuation. However, […]
Affimetrix (AFFX) $105m($10m) reg unsec sen cb pricing Tues pm from MS/Citi. Terms: 7yr, 3.25-3.75% up 27.5-32.5, pc-after 5yr@130%, prot. UOP=pending eBioscience acq. (If acq falls through, co may redeem at $1010 + interest +75% of diff, if +, betw redemption & initial conv) Market leader in genotyping. $379m mkt cap. 70% of sales – […]
Royal Gold (RGLD) $325m (+$45m) sen unsec cb coming tonight from GS. Terms : 7yr 3.125-3.625% up 30-35%, s-c yr4 @130% (m/whole table), full pctn. UOP = pay down debt, gcp. Mexican, Chilean & Canadian levered gold play. PF Cash = 405m, CB only debt, LTM ebitda = 231m FCF -194m, low lev =1.4x (see […]
$200m (+30m) sen unsec cb coming tonight from JPM/Citi/Bac. Terms: 5yr, 1.125-1.625% up 20-25%, pctns. UOP = $50m stk buyback/hedge. Happy meal. $1.2B acute/intensive care pharma. Pfolio = lead drug angiomax (used in 2500 hospitals globally, FY12 net rev expected 2 be 9-11% over FY 11), Cleviprex, Argatroben (US only) then 4 in phase 1-3. […]
Ryland (RYL) $150m (+22.5m) sen unsec cb coming tonight from CITI/JPM. Terms: 6yr, 1.625-2.125% up 37.5-42.5%, full pctns. UOP=gcp/debt repayment. Larger LEN has 3.25% which back out L+460 to 11/16, RYL 6 yr CDS is ~320 mid but sector trades with basis (100-150 bps). Z-spread on RYL 6.625% ’20 str8 ~480bp. We’ll use L+450 for […]