07-09-14 Macquarie Infrastructure Company (MIC)

********** $250m (+37.5m) sen unsec cb coming Weds night from BARC/JPM/WFC.

Terms: 5y, 2⅞-3⅜% up 17½-22½%, full pctns (div>.95). Cncrrnt 10m stk offering. UOP=acq remainder of IMTT. $3.5bn diversified infrastructure biz; Airport (63 US airports), Marine (10 US & 2 Canadian ports) & Nat Gas/Solar sevicing w/stk +19% from 01/14 low.

PFcash=124m,debt=2.03bn,LTMebitda=448m,fcf=200m (Co states acq has been CF acretive but provides no nos),net lev=4.25x.We’d assume L+200 & BBB- (exp rating).

ADV=270k, no leaps, 1y 100/200d =17.5/18.5%. We’d assume 17% for 5y. Theo=99.9/101.4/102.9. REIT type play (co pays out 80-85% fcf thru div)=high div/low vol so not exciting 4 hf’s HOWEVER, this won’t be driven by them. Small IG rated play w/cpn, nice optics, high floor w/appeal to L/Only.

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