Topic Archives: Credit Analysis Reports

CETV 3.5% converts analysis 11/2010

November 2010 I like the CETV 3.5% converts due 3/15/13 trading at about 89 for a 9% yield to maturity. There is s a good chance that the company will try to pre-fund the maturity of this convert so the overhang on the stock is lifted. I spoke to Romana Wyllie, VP corp communications, about […]

LDK Solar analysis – 06/01/10

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 […]

GY 2.25% converts analysis 03/24/10

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 […]

NIHD Analysis 8/22/07

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 […]

EYE Analysis April 13, 2006

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 Analysis 4/12/06

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 […]

HLTH analysis – 1/11/06

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 […]

Qwest Analysis 11/5/05

Qwest Analysis – 11/5/05 Summary The 5 year CDS for the convertible issue was quoted at 325/350. I believe that the spread could tighten by 50bps to 275/300 within the next 12 months. Qwest generates strong and steady cash flows of about $1.1B per year and management is committed to continue to reduce debt and […]

Sybase Analysis 11/25/05

Sybase (102.557 vs. $21.79) Summary I would use 200 over L as the credit spread for the convert, which has a 5 year put. The credit risk is low because SY’s software maintenance fees produce a sizable annuity-like cash flow. The primary risk is that management makes big acquisitions with that cash, which is why […]

FEIC Analysis 8/29/05

FEIC Analysis 8/29/05 Summary The FEIC 5.5% converts due 8/15/08. trade at 100.375. The main risk for this position is FEIC’s credit risk. I reviewed the company’s business and financials and have concluded that the credit is solid. Positives for the credit are 1) the company has $276M in cash and $220M in debt. 2) FEIC is […]