$350m (+52.5m) sen sub cb coming tonite from JPM. Terms: 5y, 4¼ -4¾up 57½-62½, S/call y3 @ 130%, full pctns. UOP=retire some of 3% sen/sub CB. $2.8bn class 4 to 8 commercial truck & diesel engine manfctr. Recently issued $200m CB in 10/13; 4.5% up 60% due 10/18 (4.6y), now -1.75pts post announcement,x/par 4.5% +69%
(57d) & back out L+630 (35vol). PFcash=1.52bn, debt=3.95bn, LTM
ebitda=(412m) w/FY14 exp ebitda=360m & FY15=970m. ’21 8¼Sr str8 ~L+544. Co has had emissions tech & warranty exp issues BUT has managed cash well. We’d use L+725 for 5y sen/sub.ADV=1.1m,01/16 calls 35iv bid.We’ll be generous & use 35% & 75bp brw.Theo=97.6/ 99.2/100.7. 4.5% 18 richened w/long only demand (small issue) & x/par +69 vs new +60% (mids).New=not gr8 in model but w/get done