06-17-14 J2 Global (JCOM)

$300m (+45m) sen unsec cb coming tonight from BOA/CITI/WFC.Terms =15y, 3-3½ up 42½-47½%, H/C 7y, puts 7,10y, full pctns. UOP= acq/gcp/reapy sen debt.$2.3bn cloud based biz services & digital media provider founded in 1995.PFcash=499m, debt=550m, LTMebitda =230m, fcf=177m,gross lev=2.4x. Conundrum=We would have assumed a tighter spread BUT it’s $250m structurally sen(sub guarantees) 8% str8 ~108.75=L+394 OAS to ’16 call (although v/illiquid).We’d assume B+ & L+400.ADV=340k, no leaps, 1y 100/200d=32/34%.Despite 7y/low ADV, we’ll be generous & use 30%. Theo=98.7/100.7/102.8.

$3.2bn of world issuance just yday & >13deals within last 2 wks & scndry mkt cheapening as if more is to come. If it is the case mkt w/be able 2 be more selective. Px’ing streched on this one


Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>