$440m (60m) sen unsec cb coming tonight from MS/GS?BARC. Terms Tranche A: 5 yr, 0.5-1% up 32.5-37.5%, full proctections. UOP = gcp/acq/hedge. Continuing trend of equity +dvd cb structures w/pre rate move coupons. Stock +32% from Feb low with a healthy $11.4B mkt cap now. Similar 2 CSOD with limited history (IPO in 2012) N/CNQR comps are better credits/more established (we use L+350 for CNQR on 05/13). We’d use L+400/450. ADV = 870k, 2y 90d 10/50ile = 33/34. We’d use 32% for both theo = 99 A, 98 B. Not a model play but at what cost do you pay to get long equity story. Rate move this am does not help this pricing. Some may use higher vol/tighter credit but this is the wrong px again.
Enterprise cloud based applications for HR and finance
PF Cash = $1233m
PF Debt = $461m
LTM EBITDA = -77m
LTM FCF = 9m
Leverage nm
Mkt cap = 11,377
WDAY went public 10/12, limited history. Cloud based s/w is hot, but could be yrs before EBITDA turns positive, if ever. Primary comps are Oracle and SAP both late to accept cloud as future but throwing resources at catching up. Benefit from ERP replacement cycle and move to cloud. Will need to spend aggressively to build out finance platform. Could involve acquisition as well. Have lots of cash right now to carry them. N and CNQR are both comps in cloud space but are more established with EBITDA and FCF +ve
Our assigned spread L+400/450