$270m (40m) sen unsec CB coming tonight from HPM/Barclays. Terms: 5yr, 0.5-1% up 27.5-32.5%, full pctns, UOP = share repurchase, working play.
PF debt = $273m
PF cash = $423m
EBITDA $25m
FCF $46m
11x leverage.
We’ll use 27% for 5 yr. Borrow GC
Theo = 100.45
Mids floor of 84.5 and a balanced delta of 56
Tech sector losing paper and easy big brother comp CRM means that you don’t need your head in the clouds to see appetite for this one. Stock pickers might say it needs to breather, model says mids but CB market need suite deals BUY