$1.6bn (+240m) sen unsec cb coming tomorrow from GS/MS/JPM/DB.
Terms: <A> 5y, ¼-¾ <B> 7y, 1¼-1¾% up 37½-42½%, full pctns.
UOP=note hedge/Gen III dvlpmnt. PARTIAL HAPPY MEAL. Stk +2.25x since existing $660m CB came 05/13 (1½% + 35%) & now ~209 (-1pt post announcement).LTM cash=2.34bn,debt=2.28bn,LTMebitda=44m (FY 14=422m est),lev=5.4x FY14 est. Existing CB=eqty at this pt so not a great metric.We’d assume L+350/400 for5/7y respctvly. ADV= 9.6bn, 01/16 leaps 50iv bid, we’d cap vol @ 40%. For any h/fund this is a BRW game. Brw -.5 to -3% in OCT as eqty shorts set up & CB sold off on way down (SI=36% now).Theo w/.5brw(A)99½/101½
/103.3 w/2%brw=97.4/98.9/100.7. <7> 100/102.3/104.6 w/2%brw=96.3 /98.4/100.6. MUSK 4 o/r’s, h/f MUSK be wary about BRW history