9/12/12 Jarden (JAH)
$450m (50m) sen sub cb coming tonight from BARC/JPM. Terms: 6y, 1.875 up 27.5-32.5. UOP=gcp and share buyback. Happy meal. CEO has SPAC history so savvy (1.875 on 6y sen sub w/credit tight/stk high & levering co to buyback stk all proof). Pari 7.5% 20 OAS = L+310 & 7.5% 17 z-spread = L+320. 02/12 sec t/loan negotiated @ L+300 but credit has rallied a lot. We’ll use L+375. ADV = low 200k 2 yr 90d 50/10 ile = 25/22. We’ll use 20%. Theo = not model cheap but let’s not fool ourselves; try finding a balanced consumer goods cb w/30% prem in mkt. Not about theo value, it is about owning stk w/div. New primary paradigm = closing your eyes as a h/fund watching fair go rich. RISK = if/when credit turns u will get hurt 6y L+375 on B credit w/200k ADV does not hold.