4/11/12 Micron added S/C make whole protection on both bonds.
$870m (+130m) sen unsec CB coming Thurs night from MS/JPM. Terms C 20y, 1.875-2.375% up 37.5-42.5%, s/c 4 yr @130 put H/C yr (D) 20 yr, 2.625-3.125% up 42.5-47.5%, s/c 5yr @130 put & H/C 9y. full pctns. UOP = gcp/hedge. Similarly structured 2 tranche deal came 07/11 w/stk @7.6. 7yr <A> came 1.5 up 25% & 9yr <B> 1.875% up 25%. Big difference is no S?C make whole on this deal. Currently, 6 <A> backs out L+475 & is 1 pt cheap (425/40) whilst 8yr <B> backs out L+51- & is 1 pt cheap (475/40). We’ll use L+450 for 7 yr & L+500 for 9 yr <D> 40 vol for both. Theo = 103.9, 103.2. <A> and <B> premo crunched horribly last sept on way down. These wont be different. AVOID unless cheaps.