$125m (19m) sen unsec cb coming tonight from CS. Terms: 5yr, 2.25%-2.75% up 27.5% – 32.5%, full pctns, UOP = repay $80m revolver/note hedge
Largest retail FX broker in US & Asia w/75% of revenue coming from retail. Agency model limits risk.
Generated $102m operating CF in FY 12 and current cash = $273m
We’ll use L+450.
ADV = 216k, 2 yr 90d 50/10ile = 41/31
We’ll discount to 28% for 5 yr. Borrow currently just off GC, so we’ll use 65bps, Theo = 101.125.
Feels like broken record, but another small balanced deal so usual market dynamics should apply here. BGCP’s were extremely difficult to find after the dust settled and we’d expect nothing less here. Push for mids. BUY