****************** DAIWA NEW ISSUE COLOR: OPK ****************** $150m sen unsec cb coming tonight fomr JEF. Terms: 20y, 2¾-3¼% up 17½-22½%, Puts 6,10,15y, S/C @ 130% 4-6y, H/C 6y, full pctn UOP=gcp. Equity + div trade w/no brw. Stk up 10x from ’09 low &+30% ytd. Another interesting eqty/crdt story; multiple projects like prostate cancer diagnostic/pt-of-care diag/ALS, Alzheimer & Parkinson’s preventative drugs/biomarker platform 4 Alzheimer & cancer. Lots of potential catalysts in pipeline. CEO is chairman of TEVA and owns ~40% of OPK stk.PF Cash=139m,debt=117m,LTM FCF= (28m),ebitda=(25m),yrs of cash=5 (See CREDIT COLOR). We’d assume L+700. Not a hedge set up (no brw) but w/mgt & eqty x/over mkt this should be placed with rel/ease. Yield enhanced stk play on an interesting eqty story. >BUY< (Co Filing/BBG)
——–> Daiwa New Issue Credit Color: Opko Health <———–
* Start-up focused on pharmaceuticals & molecular diagnostics.
PF Cash $139mm
PF Debt $117mm
LTM EBITDA $(25)mm
LTM FCF $(28)mm
Yrs Cash 5yrs
Mkt Cap $1885mm
* OPK has been acq cos & making inv to build a port of prods & facilitate distrib across multi geographies, incl EU, Chile, MX, Brazil, & Israel. Working on many projects incl point-of-care diag sys, prostate cancer diag test, biomarker discovery platform (Alzheimer & cancer), preventive treatments for neuro degenerative diseases (Parkinson’s, ALS, Alzheimer), oral drug for COPD & asthma. All are promising, but only time will tell. CEO is Chairman of Teva. Small bank line is only other debt.
* Our assigned spread —>L+700<— Src: Bloomberg, Co Filings