$600m (+90m) sen sub cb coming tonight from BARC/CS/JPM. Terms: 20 yr, 1-1.5% up 20-25%, 10 yr s/c @130% & 10 y put, full pctns. UOP = $250m stock buyback/gcp. Partial happy. $8.8B consumer product manufacturer w/stock +49% since 03/13. Existing 4.5 1.875% came 09/12 +34% w/be exiting the UBS index tomorrow (>140). Pre-deal 143.875 vs close back out L+416 (28%) & are now-0.5pt.
5.25yr 1.5% came 06/13 +30% & backed out L245 (124.875 vs close). -1.5 pts this am L+340 (long dated 1.5% tighter due to price)
PF Cash = 1.476B
PF debt = 5.45B
LTM ebitda = 962m
FCF = 457m
We’d assume L+300 for 10 yr which is generous. 25% vol.
Theo = 100. Delta already 79% w/62 SBV so not an obvious switch for outrights however market wants new JAH and Index inclusion a given.