$150m (+22.5m) sen unsec cb coming tonight from JPM. Terms: 5y, 2¾-3¼% up 25-30%, 3y put, full pctns.UOP=note hedge/gcp.$2.1bn Chinese online recruitment provider, founded ’98. Stk +34% from
05/13 low. Periods of over issuance; REITs ’07/08, BDCs ’10/11, Mrtge REITs ’12/13, Chinese internet ’13/14?? Lets look @ China; SINA=L+440,QIHU=L+490,CTRP=L+579,VIPS=L+780,SFUN=L+775,EJ=L+980,
YY=L+1036 (40%). No arb here, spreads represent perceived credit quality/comfort. Stated PFcash=649m,debt=150m,LTMebitda=97m,fcf=
60m,lev=1.6x. We’d assume L+650. Not many 2bn mkt caps w/52k ADV No leaps,1y 100d=31, 200d=33. V/low ADV=capped vol @ 25%.Brw -1% but wider >deal. We’ll use -1%.Theo=99½/101 3/16/102⅞. Small deal will get done w/lack of issuance BUT there is better in China.