$200m (+30m) sen unsec cb coming tonite from Piper Jaffray.Terms 20y, 2¾-3¼% up 32½-37½%, s/c 4y @ 130% (t/o matrix), puts 7, 10,15y, full pctns. UOP=fund AngioScore Inc/gcp. $1bn c/vascular medical device maker. PF/LTM no’s less relevant BUT 4 ref; Cash= 80.7m, debt=200m (CB only debt), EBITDA=10m (12/31/13), lev=12x.
Acq exp2 be accretive (8-10m synergies by 2015 w/net lev exp to drop to 6x). We’d assume L+650 for 7y. ADV=meagre 350k, no leaps 1y 100/200d=40/49%. We’d cap vol at 35% due low ADV/7y duration & -ve gamma concerns. Theo=100.7/102.8/104.9. Similar structure
employed by Piper w/FLDM in 01/14 & bonds performed v v /well
(came 2¾% +40 now x/par +75%). Despite call before put concerns reasonable optics/pricing in this space will set hearts beating