************** $100m (+15m) sen unsec cb coming tonight from GS. Terms: 5y,4½- 5% up 10-15%, full pctns.UOP=repay debt/gcp.$750m BDC formed ’10 w/pflio concentration=software/education & biz service sectors.
>> Larger IG comps=$3.4bn PSEC (4.6y 5⅞%=L+344 w/15%),$5.1bn ARCC (4.6y 4⅜%=L+171 w/15%). Smaller $650m BBB- BKCC w/its 3.7y 5½% cb backs out L+276 (15%). NMFC has 3 revolvers btw L+200-275bp depending on 1st/2nd lien inv. We’d assume L+425. ADV=400k, 1y 100/200d=13/14%, no leaps. Not a vol trade but 4 a sanity check we’d assume 15%. Theo=97.8/99.2/100.8 w/~95 SBV & 30 theo delta.
>> Last PSEC came 4¾% up 15% BUT re/offered @ 97.75 in 04/14. NMFC does not have the IG status BUT is small enough to get done w/a few concentrated holders & likely to move into obscurity after.