$120m (+20m) sen unsec cb coming tonight from MS. Terms: 5yr, 1.75-2.25% up 30-35%, full pctns. UOP = call spread/gcp. Stock +2x from 11/12 low (+29% after Q2 earnings). Mkt leader in recurring rev/mgmt cloud technology. Rev +70% in last 5 yrs & FY exp rev = 270-274m, FCF 2-4m & PF Cash = 250m.
Cloud is now well represented in our market & the sector trades tight
CNQR 0.5% (4.8yr) = L+310 (30%)
MDSO (5yr) = L+410 (30%)
N 0.25% (4.8yr) = L+180 (30%)
WDAY 0.75% (4.9 yr) = L+270
WDAY 1.5% (6.9 yr) = L+410 (30%)
We’ll assume L+500
ADV = 860k, no leaps, we’d assume 35%
Theo – 104
Nothing has changed. Market wants and needs new paper & cloud space has been popular with outrights. Lofty stock valuations and good improving credit stories also provide a good way for hedge funds to play cap structure thru CB.