$1b (+150m) sen unsec cb coming Tue night from MS/BOAML. Terms: 5yr, 0-0.25% up 47-52%, full pctns. UOP note hedge/acq/gcp. CB shud appeal to o/r’s with HF struggling with mode & optics.
PF Cash = 2.73B,
PF debt = $1.575B
LTM FCF = $557m, LTM EBITDA = $261m
6x leverage. Olds came 0.75 up 25 for $500m deal, we used 250/32 then, now we’ll use 200/30 (some suggest 150/32) Theo = 98.01. Stock on high, +149% from last issue. Apart from lousy optics, model that struggles, no obvious equity switch and low coupon, it’s great. You’ll hear index, technicals (so much IG rolls off next 6 months), o/r wall of money, quasi IG, PCLN precedent, etc . Should be cheaps but balanced (48% delta & 87.2 floor) so don’t let model Cramp your style.
Customer relationship management application via the internet or cloud.
CRM offerings include sales, service, marketing & salesforce platform for apps. They sell globally to cos of all sizes w/70% rev from Americas, 18% Europe, & 12% A?P, strong growth w/rev up 35% yoy driven by acq. Compl 8 acq FY13 w/$580m cash, Buddy largest to date $73m ($498m cash). Significant cash and FCF provide liquidity. More acq to come. Possible patent infringement litigation adds uncertainty.
Our assigned spread L+200