All about converts

$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. Angioma/Angiox sales grow every year w/US sales +10.9% in Q411 alone. Co has $296m cash w/this CB being the only debt. We’ll use L+500. ADV = mere 479k, no leaps, 2y 90d 10/50ile = 27/34 vol. Given lack of ADV, mkt cap & -ve gamma, dscnt to 25v. Theo = 100.25. Pipeline = future catalysts, good equity story 4 long only so expect their interest. Not obvious arb set-up. Acutely aware of recent primary performance. CHEAPs.