$110 (+15m) sen unsec cb coming Wednesday from GS. Terms: 7y 3.5-4% up 32.5-7.5%, full pctns. UOP = repay line of credit/gcp, Co tried coming to market in June 2011 w/concurrent HY deal. HY deal struggled and both deals got pulled. CB terms on mids in 2011 were 3.75% up 25, now 3.75 up 35.
PF Cash = 73m
PF debt = 360m
LTM ebitda = 31m
LTM FCF = -25m
Leverage 11.6x
Mkt cap = 689m
Co recently amended rev and term loan (9/12) @ L+400. We’ll use L+700 for unsecured CBs. 2 yr 50/10 ile real vol = 37.8/31.4. No leaps, ADV = 144k. We’ll discount to 27 vol. Theo = 102.125. Once again, a small deal that serves as enhanced equity trade w/possible xover interest. As has been the case with these small deals, it will get done, but we’d prefer to buy on mids or better.
Real estate invest inc single-family res lots & mixed use comm., oil & gas e&p, and fiber resources
Involves in 3 different biz, real estate 69% of revenues followed byoil & ga 26%, & fiber 5%. All biz neg impacted by downturn, but have improved more recently. R/E primarily TX and Atlanta. Acq Credo Petrol in Sept for $155m cash, boost oil exposure to 57% of proved res. YE est proved res of 5.6mm boe. Also acquired r/e projects. Amended rev/term loan 9/12, secured paying L+400. $200m revolver now fully available boosting liquidity.
Our assigned spread = L+700