$400m (+60m) sen unsec cb coming tomorrow nite from CITI/JPM.
Terms: 5y, 1¾-2¼% up 35-40%, put 3y full pctns.UOP=GC.History;
11/13 $250m 1⅜+42.5% becomes 2⅜+40% reoffered @99->Gets pulled Why now ? stk +76% along w/many China internet stks. PFcash=615m debt=400m,LTMebitda=96m (exp 2 be 145m FY14/211m FY15). 6.75bn 2.75y SFUN ~L+800, 8.5bn 3y VIPS ~L+770, 1.9bn 2.75y EJ ~L+1120 4.5bn 2.7y ~L+440 (40%) as examples. We’d use L+700. ADV=1.3m,
01/16 same strike=68iv bid. We’d cap vol @ 40vol. Brw pre-deal ~75bp, now wider (200bp 11/13). We’d use 1%.Theo=101½/103/104.5 Arguably a better credit 4 months later but SFUN/SINA/CTRP/VIPS off highs (QIHU/EJ exceptions), Y Y would mkt now want similar terms & strike +76% from 11/13. EJ/VIPS/SFUN better value ??