******** $125m (+18.75m) sen unsec cb coming tonight from BAML/WFC.Terms:
5y, 2¾-3¼% up 27½-32½%, full pctns. UOP=cb hedge/repay Gulf Opp/Zone bond guarantees.$400m leading NA Biodiesel manufacturer /service provider founded ’96 (w/257m gallons of owned/operated annual prdctn within NA). PFcash=136m,debt=160m,LTMebitda=128m,
fcf=80m (ex acq),lev=1.3x. Small mkt cap BUT low lev/solid crdt.
We’d assume L+650 for 5y. ADV=600k, no leaps, 1y 100/200d=57/56%
Small mkt cap/low ADV/brw concerns on way down=35vol assmptn.
Brw GC/just off top right now. Theo=103.7/105.7/108.8. Risk here w/Bio-diesel= if govt pulls back on mandated annual production
BUT nice optics/lack of energy issuance/small issue, we don’t
really need to say too much more here.