4/17/12 Tibco (TIBX)
$500m (+75m) 144a sen cb pricing tonight from MS/JPM/C/BAML. Terms: 20 yr, 2.25%-2.75% up 47.5-52.5, 5yr put/call, prot. UOP = $150m stock buyback, $150m credit facility & gcp. Partial Happy Meal. TIBCA Software provides infrastructure software products to link internal operations & customer channels in real time. $5.4B mkt cap. 2.5x lev, consistent FCF generator. IBM.Oracle, & SAP are all competitors. Co has been acquisitive. We think L+450. 2 yr 90d 50/10ile = 41/34. We’ll use 35v. Theo = 102.75. Model trap for hedgies as 2.5 up 50% optics are stretched. Outrights may like the story deapite stk at an all time high. Mkt deserves a good deal so push for MIDS or better. Will get done easily.
Infrastructure software products for companies to use on-premise or as part of cloud computing.
PF Cash $460m
PF Debt $538m
LTM EBITDA $217m
LTM EBITDA $217m
LTM FCF $194m
Leverage 2.5x
Mkt cap $5.4B
TIBCA is competing against some much larger s/w cos incl IBM, Oracle & SAP Co has been very acq, most recent log logic for $130m cash closed last week. Additional acq are likely. Also using cash for stock buybacks w/$200m each of last 2 FYs & $150m of deal proceeds. Liquidity is good w/large cash balance & full $250m revolver avail (matures 12/16 L+125 to 200). Co consistent +FCF generator. Only other debt is $38m mortgage.