Medicis (MRX)
$400m (+50m) REG sen cb pricing tonight from DB/JPM. Terms: 5 yr bullet, 1.5-2%, up 20-25%, protections. UOP=gcp and warrant transaction. MRX is a specialty pharma focused on dermatological & aesthetic conditions. $2.3B mkt cap. They reported better than expected earnings this week driven by early success of alternative fulfillment programs in Acne biz & volume growth in aesthetics. Strong b/s: pro-forma cash = $742m, debt = $569m (incl $169m of o/s ITM 2.5s). We’ll use L+400. Despite a vol spike in last yr, historically been low 20s. We’ll use 24 vol. Theo = 101. Solid company known by converland. Clean structure. Balance bond. BUY