01-16-13 Pacira Pharma (PCRX)


$100m (+110m) sen unsec cb coming tonight from Jeff/Barc. Terms: 6 yr, 3.504% up 27.5-32.5%, 4y s/call@130%, full pctns. UOP=repay sec-facility/fund Exparel. Another enchanced equity play, this time a $600m mkt cap pain mgmt pharma. Co has 1 large drug = Exparel (post surgical mgt) which is the play here. Launched 04/12 it has potential to reach 40m patients & looking 4 a European partner (see credit color). We’ll assume CCC & L+700. ADV= 252k, no leaps but we all know this is not a model trade. We’ll cap vol at 35%, use 2% borrow 2 model just as a sanity check. Theo = 103.3

This has been pre-placed so when you add the obv x/over interest do not expect too much. NUMB yourself for small allocations. BUY

Specialty Pharmaceutical company focused on hospital based products for pain management

PF Cash $134m

PF Debt $100m


LTM FCF -76m

Yrs Cash = 1.8 yrs

Mkt cap = $617m

Small pharma w/one marketed product Exparel (post-surgical pain management). Launched 4/12 in the US w/sales slowly ramping. Large market opportunity with 40m potential patients. Looking for an EU partner. Recently signed partnership w/Aratana for animal health. Proceeds will repay 9.75% secured bank loan entered in 2012 & provide additional funding for Exparel ramp incl new manufacturing facility maybe online 4Q13. Pipeline is 2 P2 Exparel trials for nerve block.

Our assigned spread L+700

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