$300m (+45m) sen unsec cb coming tonight from MS/MER/GS/RBC. Terms 5y, 3-3.5% up 27.5-32.5%, full pctns (kinda). UOP = gcp/acq NRG Energy Assets. Former subsidiary of NRG ipo’s 07/13 @22 w/stock +71% t/d ($2.4B m/cap). Owns portfolio of renewable & conventional generation & thermal assets.
PF Cash = 421m
Debt = 1.467B
LTM ebitda = 195m
FCF = -144m
Lev = 7.5x. EBITDA exp to ramp; 256m 2014 388m 2015
We’d assume L+400. ADV = 370k, no leaps, 100d=28% but given limited data we’ll refer to its parent; NRG.
01/16 calls 22iv bid and 1 y 100d 21%. We’d assume 22% for 5yr. Theo = 98.1
Euro style dvd pctn = steps w/15% annual dvd growth projection so unique to out mkt. Deal really structured for long only & directional hedge funds w/90ish SBV and balanced profile.