$250m (50m) sen sub cb coming tonight from JPM/BARC/WFC.
Terms = 6yr, 1-5.5% up 30-35%, full pctns. UOP = gcp. 1.875% 2018 = darling of the O/R. In 3 pts like a lot of the rich balanced space of late. Came 1.875% up 34%, went out 115.75 vs close and xpar +39% & ICS of L+200 (22 vol). Pari 7.5% 207 L+307, 6.125% 2022 L+392 so despite 3 pts lower the 1.875% still rich. Stock +28% since 09/12 & UBS index inclusion helped fuel that 1.875% richness. 5y out 40bp since 1.875% issued. New coupon 1.25% ? + stk is already up 30% + too small to go into index = no obvious switch for o/r unless 100 $px & closer to bond floor is essential. Using L+325/22 vol = 97. O/R driver in this book (look at HDS). H/F = 1.875% still fat and tough to buy fair NI’s in this markets. Love deals but leave to o/r.
———-> Daiwa New Issue Credit Color: Jarden Corp <———
* Diversified consumer products co offering small appliances, household products, fishing & outdoor prods, & sports equip.
* PF Cash $693mm PF Debt $4062mm LTM EBITDA $714mm
LTM FCF $266mm Leverage 5.7x Mkt Cap $5049mm
* JAH has diversified port of brands incl Coleman, Rawlings, Mr.Coffee, & Sunbeam. Have grown co thru acq, which has increased scale & diversity. Focused on growth thru intl expansion & possibly more acq. Liquidity good with cash & most of $250mm sec rev available. Co consistent +FCF generator. Using cash to buy back stock w/ $583mm in FY12 & $265mm 1Q13. Significant amt of secured & senior debt ahead of senior sub convertibles.
* Our assigned spread —>L+325<— Src: Co Filings, Bloomber