$400m ($250m placed w/FP) sen unsec cb coming tonight from DB.
Terms: 7y, 1½-2% up 40-45%, full pctns (Euro t/o ratchet) UOP= repay existing debt/capex. $4.5bn Solar mnfctr/service provider incorporated in ’85 w/stk +1.1x in LTM. 2 existing deals; 250m 4½% ’15 (157⅜ vs cls w/5.4pts premo) & ~45iv but s/dated (.14
vega) so not a gr8 metric. $300m .75% ’18 (~151½vs cls/4y/.5% +
10%) & ~43iv assuming L+300/1% or L+194(40%).LTMcash=1.15bn,debt =1.31bn, LTMebitda=357m, fcf=15m, gross lev=3.7x.We’d assume B- rating & L+450 for 7y. 01/16 upside calls >45iv,1y 100/200d=53%.
Given FP’s 60% stake w/eqty (plus stake in CB) we’d use 40% & 1% brw (oscillates btw .5-1½%).Theo=97.4/99.6/101.8.Model fair BUT small free float/best of class w/quasi FP floor w/get it done.