$1.25B (+187.5m) sen cb, pricing post-close Thurs from JPM, GS, BOA, RBC, DB, WFC. Terms: 5yr, 0.25-0.75% up 47.5-52.5%, pctns, Happy meal, UOP = CB note hedge/GCP. Reported earn post-close: FY guided higher, but Q2 guidance revised slightly lower.
PF Cash = 484m
PF Debt = 1.25B
LTM EBITDA = 725m
LTM FCF = 193m
Lev = 1.7x
CB only debt
We’ll use L+125. 2yr 100d realized vol = 30.9, LEAPS illiquid. Can argue for lower but we’ll be generous and use 30.
FV = 99.625
With SBC hi 80s, obvious o/r appeal/index inclusion. NOW came 0 up 37.5 (now xpar 0/55), AKAM 0 up 50 (now 0/54), YHOO 0 up 50 (now 0/63). All 3 trade > 37 vol. On rich end, CTXS = 33.6 iv (granted lower stock vol). Optically, its less than stellar but vs comps in 2ndary, reasonable.